Outsourcing India vs China
August 12, 2009
Tech work has gone global, which means businesses not only have to decide what outsourcing company they want to hire, but where they want that work done. India is still the number one destination for service jobs, according to a new study by IBM. But China is emerging as a solid second.
With the rupee rising and talks of an Indian labor crunch, some businesses are looking to China as a cheaper alternative. What￢ﾀﾙs right for your business? Here￢ﾀﾙs some information to help you decide, courtesy of CIO Magazine.
China is churning out more engineers than India, has better roadways, power and telecommunications infrastructure. And the outsourcing shops in China have technology that￢ﾀﾙs pretty much on par with their Indian counterparts. A flight from Chicago to Beijing is an hour shorter than one to Delhi, all of China￢ﾀﾙs big cities have Starbucks, and you￢ﾀﾙre more likely to find a cheeseburger there.
Still, the quality of the software that Indian programmers write is generally higher than programmers in China. Indian outsourcing companies have skilled project managers and business analysts, and thousands of staffers, which means they can easily take on more work. Most outsourcing to China is still done on a project-by-project basis, according to CIO.
One last factor tips the balance in India￢ﾀﾙs favor: English is the language of business. In China, most people only speak Chinese. So despite China￢ﾀﾙs gains, companies are probably better off sticking with India unless they have a good reason to go somewhere else.