Can India maintain edge in outsourcing?

Written by Dominic Lee

Topics: China, Outsourcing

Minister of State for Labour Oscar Fernandes said India will loose its outsourcing share to China and others if it does not continue with low costs.

“If outsourcing is favouring India today, it does not mean it will always be in favour of India,” he said, adding “the time any country provides labour even for a rupee cheaper than us, outsourcing will move to them”.

When asked about who these countries could be, he said that presently “China is the biggest threat”.

He also stated that China is ahead in the technology sector.

“India has a reservoir of highly technically qualified professionals,” he said at a workshop on ‘the role of trade unions in globalized economy’.

As a company that relies heavily on outsourcing, I’d have to disagree with Mr. Fernandes. I almost NEVER work with Chinese companies because Indian outsourcers have much better English than Chinese, the time it takes us to educate our vendors is 3-5 times less than when we teach the Chinese vendors. While the rate of China maybe cheaper, the language of India will allow it to maintain an edge in the outsourcing market.

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One Response to “Can India maintain edge in outsourcing?”

  1. KPO Wizard

    Magic of Tier II Cities

    Tier II and tier III cities are having new developments and are directly competing from big Metros and other tier I cities. This has brought about certain changes in the lifestyle, standard of living and hence expectations of the residents of these cities. These are transformational changes and have their own pros and cons.

    Best Regards,
    Team Banana Outsourcing

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