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China Steals Outsourcing Limelight From India

 
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Dołączył: 01 Sty 2011
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PostWysłany: Śro 5:50, 23 Lut 2011    Temat postu: China Steals Outsourcing Limelight From India

According to IDC's Global Delivery Index 2009, economic pressures,[link widoczny dla zalogowanych], the increased focus on risk mitigation leading to offshore diversification strategies and the intense pressure on infrastructure have enabled Chinese locations such as Shanghai and Beijing to take some of the limelight away from Bangalore and Delhi as global delivery locations. The strong drive for diversification brought on by recent events such as the terrorist attacks in Mumbai and Jakarta and the H1N1 outbreak across the region, have forced organizations to focus more on operational risk management and business continuity.
There has been a strong demand from organizations for vendors to offer diversification strategies to minimize location-centric business risks. As a result vendors offering outsourced services are drawing out business continuity and disaster recovery plans, including building out extra capacity, diversifying talent pool to be located across several regions and even organizing project delivery to be handled as a piecemeal approach to meet these market demands. Emerging locations are building such plans into their offerings and are well set to compete for the share of pie that will move out of India.
Government support to build out ICT infrastructure and the increase in the number of graduates with appropriate skills sets are factors helping to accelerate China on the maturity curve. Since the Chinese cities are not completely mature in terms of services offerings,[link widoczny dla zalogowanych], there are still significant opportunities that exist for growth. IDC sees Chinese cities such as Chengdu and Shenzhen creeping up to take positions in the top 10 optimal locations for offshore global delivery by 2013. Bangalore on the other hand, which is struggling with growing demands on both ICT and non-ICT related infrastructure and increasing costs,[link widoczny dla zalogowanych], is expected to give way to some of these Chinese cities by 2013.
Of the nearshore locations, Brisbane continues to be the destination of choice but Kuala Lumpur is expected to move up the ranks to overtake Dalian for nearshore outsourcing by 2013. With strong support from the government in terms of tax incentives for the organizations,[link widoczny dla zalogowanych], Multimedia Super Corridor Program, the Foreign investment Committee (FIC) focused on liberalization to make Malaysia more competitive,[link widoczny dla zalogowanych], and lower labor costs in comparison to Singapore, Kuala Lumpur is well set to provide near shore services for the region.


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