4/25/2006

India leads for Software Outsourcing services globally

The latest survey indicates that India leads for Software Outsourcing services globally. China is India’s best competitor in IT Outsourcing service market and creating lots of problems for India, but still India is on the top and could maintain its position in spite of highly competitive market scenario. Survey indicates that in present scenario, IT companies overseas still prefer to stay and work with India than working with China. No doubt many companies are there that prefer China but still they also have their presence in India or they are dealing with some of the Indian Software Outsourcing service providers.

India also possesses the lion share in the IT Outsourcing market globally and it is on the top position while China is on the second position. China is unlikely to develop an IT service providing company that can rival the Indian Information Technology giants of the industry for some time to come. This happens largely because of limited domestic demand and market, piracy of the data and lack of skilled and talented personnel. India has huge pool of IT talents that are not only skilled for IT services but also have great fluency over English language. This factor makes India the most demanded country globally.

Software Outsourcing companies

Surprisingly English being a top priority language in the Chinese education system, they cannot battle in language-intensive Software Outsourcing fields with countries where English is a native language, like India and Ireland. Another surprising issue is the heavy growth of Indian IT Outsourcing companies in China. That presents the demand of IT services from the house of India. They are posing lots of challenges to the local Software Outsourcing companies from China. Indian IT companies are getting good response in China too compared to local IT companies form China.

According to the survey also the investment opportunities in China are also less and can not be compared to the one of India. It will take time for the Software Outsourcing companies from China to create problems for the Indian IT companies. Key drivers in the success of China IT Outsourcing industry is the investment and dominance of foreign IT companies, while in India local Offshore Software Development players are dominating the local market.

Though, both the countries India and China have called for cooperation and collaboration between them to escort the world IT industry. The news and survey also suggest that around 95% of all office software in Chinese IT companies is pirated and no strict action from the government is taken for this issue. This also matters in the success of China globally for IT Outsourcing services. While in India government is very agile and aware about this issue and strict IT rules are there too to avoid any fraud in the Software Outsourcing services. India’s IT brand names are also taking active participation for the growth of the country in Software Outsourcing services.

All these issues suggest that it will be very tough task for any of the countries to take the place of India for Software Outsourcing services globally.