Published on Sat, Feb 03, 2007 at 11:19 | Source : Moneycontrol.com
Updated at Sat, Feb 03, 2007 at 12:04
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China no threat to India in IT/BPO: Report
China will remain only a distant competitor to India in the outsourcing landscape, according to a white paper prepared by Tholons Inc, a services globalisation advisory and investment firm.
China will remain only a distant competitor to India in the outsourcing landscape, according to a white paper prepared by Tholons Inc, a services globalisation advisory and investment firm.
Lack of maturity in service delivery, cultural incompatibility, poor English and communication skills and lack of confidence from buyers in the US and Europe will confine it to basic IT and BPO functions for some time.
India will lead in the IT/BPO space, but it faces challenges such as overheating of the offshore outsourcing market due to attrition, escalating wages, talent scarcity and rising real estate prices, which are leading entrepreneurs to explore other options including China, the Philippines, Russia and other tier II cities of India.
"Many people seem to think that China is the next IT/BPO outsourcing destination. But we are yet to see a significant movement outside of the manufacturing industry," said Mr Avinash Vashistha, CEO & Chairman of Tholons.
"To overtake India, China has to establish itself as a viable and large-scale offshore destination."
"Many people seem to think that China is the next IT/BPO outsourcing destination. But we are yet to see a significant movement outside of the manufacturing industry," said Mr Avinash Vashistha, CEO & Chairman of Tholons. 
