China can outdo India in IT-BPO within 3-5 years
China could overtake India as the preferred BPO destination in the next 3-5 years on the back of an educated workforce coupled with govt emphasis on IT-BPO sector.
By PTI |
NEW DELHI: China could overtake India as the most preferred outsourcing destination in the next 3-5 years on the back of an educated workforce coupled with strong government emphasis on IT-BPO sector, according to a study.
"The IT-BPO industry in China is still in its early phases of evolution but it has the potential to develop a large IT-BPO industry," the study on 'Tracing China's IT Software Services Industry Evolution' by industry body Nasscom said.
The software and services revenues in China is estimated to grow at 22 per cent to reach 28 billion dollar by 2010 including domestic market at over $20 billion, the study said. China has recorded $12.3 billion of revenues in this sector in 2006.
India's IT Software and Services Revenues is likely to reach 50 billion dollar in 2007-08, according to Nasscom.
The current industry landscape in China bears some resemblance to earlier years of Indian IT-BPO industry but systemic weaknesses and comparatively evolved demand and competitive environments are some of the challenges.
Nasscom also suggested a collaborative partnership between Indian and Chinese companies.
Indian IT-BPO exports are mainly serving the US and the UK markets, which together account for over 80 per cent of the total exports.
On the other hand, China's key export market areas are Japan and Korea, where it has certain inherent linguistic/cultural advantages, the survey noted.
"The IT-BPO industry in China is still in its early phases of evolution but it has the potential to develop a large IT-BPO industry," the study on 'Tracing China's IT Software Services Industry Evolution' by industry body Nasscom said.
The software and services revenues in China is estimated to grow at 22 per cent to reach 28 billion dollar by 2010 including domestic market at over $20 billion, the study said. China has recorded $12.3 billion of revenues in this sector in 2006.
India's IT Software and Services Revenues is likely to reach 50 billion dollar in 2007-08, according to Nasscom.
The current industry landscape in China bears some resemblance to earlier years of Indian IT-BPO industry but systemic weaknesses and comparatively evolved demand and competitive environments are some of the challenges.
Nasscom also suggested a collaborative partnership between Indian and Chinese companies.
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Nasscom President Kiran Karnik said that the Indian expertise in IT sector combined with manufacturing dominance of China could be one of the possibility for a partnership. Indian IT-BPO exports are mainly serving the US and the UK markets, which together account for over 80 per cent of the total exports.
On the other hand, China's key export market areas are Japan and Korea, where it has certain inherent linguistic/cultural advantages, the survey noted.
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