China is becoming less of Outsourcing threat to India

Last updated on May 31, 2007

Posted on May 31, 2007

I truly believe that it is all in the mindsets!  The systemic model creates the mindsets and they create further opportunities.  Chinese system has created a phenomenal manufacturing engine.  The mindsets in that country are tuned to domination in that area.  They have the brights for dominating the services market.. but the mindsets may be absent… the mindsets that created the Silicon Valley and continues to drive innovation from that small corner of the world.  I am sure even New York can provide all those resources.. but can it provide the mindsets?  Probably no.  Same with China vs India in the services.

As language, attrition and intellectual property (IP) protection continue to haunt the multinationals, the myth associated with China as key challenger to India for offshore supremacy is diminishing gradually….

As language, attrition and intellectual property (IP) protection continue to haunt the multinationals, the myth associated with China as key challenger to India for offshore supremacy is diminishing gradually.A recent Forrester report ‘China’s Diminishing Offshore Role’ stated that while China’s percentage of global delivery model (GDM) resources for the top services firms such as Accenture has dropped, there has been far greater investment into India and the Philipines.Based on interviews with a mix of 10 MNCs, Indian, Chinese and Japanese services firms as well as government officials the report states that “while Chinese services firms are supporting a vibrant local IT market, China has not achieved the offshore growth that people expected".

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