Feb 14 2008
India Ahead of China
India is growing in the BPO sector at present India is unquestionably the BPO superpower of the world. But it is also true that the competition is always on. There are other strong competitors of India who might ruin India’s BPO. There are lot of countries and one which on top is China.
China is one such country which can eat into the BPO share market of India. But for the time being India is well ahead of China because of some inherent advantages. India is currently booming in the BPO arena and has scored over China to emerge as the top offshore destination for Global businesses. In the 2004 offshore index, India remains the star performer. It has once again captured the top spot in outsourcing by a comfortable margin due to its strong mix of low costs and noteworthy depth in human resources. This fact was brought out in a study conducted by AT Kearney, an international consultancy agency.
India has a very important advantage, their command of the English language. There are lots more Indians with good English skills than Chinese. Forrester also endorses the view that scalability of resources (talent pool) is the major factor that makes India an attractive offshore location. “The cost of operations in India can be 20-30% higher than places like Vietnam or lower than places like Brazil. But part of the challenge for these countries is the lack of skills. There is a very limited set of low-end work that companies like GE are looking at and lack of quality resources makes it hard for these countries to get started. The work going offshore today is geometrically more complex than the Y2K work that India got started on with,’’ says Mr McCarthy.
India proved better than China on account of several factors. The study pointed out that China lags behind India in terms experience and other important factors like IT and management education, language skills, concerns about intellectual property and overall country risk.
According to the study, although India and China are the market leaders in this sector, there are huge opportunities present in the market to give ample space to other countries like Philippines, Vietnam, Romania, Kenya, Sri Lanka and North America market to grow.
The study also said although it is unlikely that India would be able to retain its number one slot with China aggressively trying to outstrip it in the business, it would still be able to get a decent share of the pie.
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