Why Is There More Outsourcing Done In India Than In China? What Are India’s Edge If Any Over China?
November 29, 2009 | In: Outsourcing to India
India offers cheap brainpower, China offers cheap manpower.
Through the Internet, it is easier to outsource services to India. There is even math and science tutoring of American teens by Indian tutors, using the Net and the phone.
If you want to read about what is REALLY going on with these two countries and how they will shape the new global economy by the middle of this century, read The World is Flat, by Thomas Friedman (already sold 1.5 million copies) and Three Billion New Capitalists, by Clyde Prestowitz.
The outsourcing aspects concern business executives, but the REAL impact will be on North American jobs as the Indians and Chinese are both smart and hungry for a piece of the action.
The new global economy is slowly becoming an “Olympic” economy where the best workers from each developed country will be competing directly with the best workers from other countries.
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4 Responses to Why Is There More Outsourcing Done In India Than In China? What Are India’s Edge If Any Over China?
superscr
November 29th, 2009 at 7:56 pm
I think it’s purely for economical reasons. Yes, the labor is cheap in China, but even less in India…plus Indians really focus on education as with the Chinese.
web design cumbria
November 30th, 2009 at 2:41 am
Apart from the language Indians do surpass Chinese in the ability that is outsourced. This is to do with the quality of education Indians get. Also if you look at it, Indians definitely are good in providing new solutions where Chinese are good in copying and mass producing the copies. Overall Indians are more orginal than chinese
aski
November 30th, 2009 at 8:02 am
It’s not simply why is it more in India than in China. Your first question compares apples to oranges. What is outsourced to India are service-oriented jobs like back end office work, like call centers, statistical research, design, software, etc. Whereas, what goes to China are blue collar manufacturing jobs.
To answer your second question, India doesn’t have the infrastructure to match China’s manufacturing capability. Secondly, there’s too much red tape and bureaucratic BS in India and foreign investors get turned away because of it. And the Chinese have a substandard college level educational system, which is why they can’t attract service-oriented jobs.
And yes, Indians, although not fully understandable, do speak much more legible English than the Chinese do. But then, then Indians have to train themselves in speaking in the American accent as well (I think it’s the stupidest thing that comes across when you hear someone faking a foreign accent).
hanozbk
November 30th, 2009 at 9:51 am
They speak english. Well.