Competition heats between China, India for service outsourcing

14:16, October 15, 2010      

Email | Print | Subscribe | Comments | Forum 

With low costs, advanced IT technology as well as complete infrastructure, China has become the most competitive country in global service outsourcing.

The announcement came on Oct. 14 as Beijing released its 2010 report on China's IT service development.

The report, which was compiled by the Ministry of Industry and Information Technology, said the IT service in China witnessed 30 percent annual growth over the past three years, three times more than national GDP growth over the same period. It is estimated that the growth rate is expected to hit 25 percent in three years, and the industrial scale will reach 820 billion yuan by 2012.

According to the report, the information service industry is shifting to developing countries, with Russia becoming the development and research centre of global emerging service outsourcing, the Philippines aspiring to the status of the largest call center outsourcing destination in the Asia-Pacific region and Vietnam hoping to be the world's largest IT provider.

The report said China enjoys the advantages of being a software outsourcing giant thanks to low labor costs, a large number of employees in software development, language advantages in terms of Japanese and English as well as government support. Furthermore, European and American markets have become less and less dependent on Indian outsourcing providers.

The report also pointed out that China still takes up a small portion of the global total. Despite rapid development, the outsourcing industry in 2009 only accounted for 4 percent of the global total, which is in sharp contrast to China's status as a global leading industrial country.

India, which is similar to China in many aspects, yields more than 34 percent of global offshore outsourcing services, 10 times more than China does.

By Zhang Xinyi, People's Daily Online

(Editor:张心意)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion