The US companies should cut some direct deal with Chinese to save more money<g>--India pulls China into outsourcing game
By Siddharth Srivastava
NEW DELHI - The outsourcing saga so far has proceeded along the following lines: jobs in the United States, mostly related to information technology (IT), software and customer support, are being performed at a lower cost and of similar quality in India, which has garnered the bulk of the business. China is considered to be a potential threat with its large pool of cheaper engineers, but its main disadvantage has been a lack of English-language skills among the Chinese population, unlike India, which has a 300-year history of being a British colony, with English now the first language of millions. With its "first mover advantage", Indian IT firms have established themselves in the global arena and are eagerly sought after to deliver on crucial projects.
However, the dynamics of the way the outsourcing business is being conducted are changing. Faced with increasing business from the West, skyrocketing salaries as well as a predicted shortage of skilled workers, Indian IT firms are doing the next best thing - outsourcing outsourced work from the US to China, with the added advantage of leveraging more intra-Asian business from Korea, Japan, Hong Kong and Taiwan. All the top Indian IT companies that vie for the outsourcing pool, such as Infosys, Tata Consultancy Services (TCS), Satyam Computer Services and Wipro have now established bases in China to meet growing business demands from the West.
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