Offshore Outsourcing has been known along with the divisions like; Jobs in the America mostly related to IT, Software Development and English speaking clients support are being done at cheaper cost with same quality in India, which has gain most of the business. But now China is considered as potential competitor with its huge pool of cheaper IT-engineers, and one can think move of Offshore Outsourcing jobs from India to China. But due to lack of English speaking people in China, unlike India, it would be disadvantage for them. With the advantage of this, Indian IT Outsourcing companies have established themselves in international arena and are delivering crucial projects at time.
However the way of Offshore Outsourcing business conducted is changing day by day. Faced with growing business in the Western countries, increasing salaries of high cost workers that constantly change jobs as well as shortage of skilled employees, Indian IT companies are doing the best thing: Offshore Outsourcing outsourced work from America and Europe to China.
All the leading Indian IT firms for Offshore Outsourcing pool, like that of Infosys, TCS, Satyam Computer Services and Wipro have now established center in China to fulfill the business demands that is growing from the West. Another giant Intel employs more than 3,100 engineers at its research and development in Shanghai, while in India, Intel has less than half the people compared to Shanghai at R&D facility for Bangalore.
It may be recognized that India has the major share of the Offshore Outsourcing market in world. According Gartner Group, research company, the international market of IT services worth of 580 billion dollar, out of which only 19 billion dollar is being outsourced and India has near about 80 % of this offshore business. The figure of this Offshore Outsourcing IT services is expected to increase at a very fast speed. Generally market of the IT services is broadly divided into two segments — the Information Technology services that need skilled human-power that India and China possesses and the BPO segment which requires knowledge of English language so that can not be further outsourced to China from India.
The next most important reason for IT business being taken to China is the due to advantage of cost. At this moment China has an excess supply of skilled and trained IT-engineers, which are willing to work at cheaper rate than in India. Revenue from India’s Offshore Outsourcing IT exports was more than 12 billion dollar in the year 2003-04. On an average IT-engineer with little bit of experience in China can be paid 500$ salary per month as compared to over $700 in India.
