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Growth 'phenomenon' in offshore services keeps India in lead

Kevin Kwang ZDNet Asia | March 25, 2010 9:03 AM PDT

Summary

With its strong IT labor pool and government support, India continues to dominate the offshore services scene in the Asia-Pacific region.
With its strong IT labor pool and government support, India continues to dominate the offshore services scene in the Asia-Pacific region, according to a new Gartner report.

The report, published in February but released Thursday, identified China as the most prominent challenger to India's top position because of its huge potential. A number of emerging countries such as Vietnam, the Philippines and Malaysia, which have attractive cost structures, also show promise, said Gartner.

"India continues to lead in this market because we won't see another Asia-Pacific country displaying the same growth phenomenon as it has," said Jacqueline Heng, Gartner's research director for business process services, in a phone interview. "This is down to factors such as its predominant English-speaking base, strong government support and political stability."

Australia, New Zealand, Singapore, Thailand and Indonesia made up the rest of the top 10 offshoring locations selected by Gartner. For the study, the research firm assessed the capabilities and potential of 30 countries based on 10 categories, including language proficiency, government support and availability of skilled labor pool.

While India continues to grow in terms of revenues from the export of IT services, the Gartner report noted that its relative share of the worldwide market has declined marginally. This is because other countries are investing heavily in an effort to gain more market share, while enterprises are also engaging in "derisking strategies"--spreading out their outsourcing activities in a portfolio of countries besides India, according to the study.

For more of this story, read Growth 'phenomenon' in offshore services keeps India in lead on ZDNet Asia.

Talkback Most Recent of 9 Talkback(s)

  • Big part of credit should go to US government
    Thanks to year after year job killing policies that make USA less competitive, most of jobs lost in the states are shipped either to India or China. W/ the latest universal health care bill, the trend is expected to continue if not accelerate.
    ZDNet Gravatar
    LBiege
    25th Mar 2010
  • Yes, but dont forget corporate greed either
    Nothing that our own home grown lads couldn't be gainfully doing if the One World Order wasn't against paying workers, especially here in the west, livable wages (short of erudites with high end degrees). That way they justify (a la CYA) their outrageously inappropriate salaries and annual bonuses! LCD - lowest common denominator - is the only mantra and acronym they know, applicable to one and all -- except themselves of course.

    That's your modern - and somehow legal - corporate criminal class.
    ZDNet Gravatar
    klumper
    25th Mar 2010
  • Everyone is a corporate in a sense
    Say there are two grocery stores A and B. They sell the exact same stuff but A charges 10% more. Which one do you go to? You wouldn't say, "Gee if I go to B only, I'm screwing those who work for A. That's just morally wrong. I refuse to be that greedy. I'm going to A to pay them 10% so that they'd keep their jobs."

    Most people go to B b/c that 10% they save is the 10% they could spend on other things. That doesn't make most people an instant greedy big corp. See market chases cheaper labor, and that's just the way it is. A wise government therefore should not run stupid policies to hurt own citizens' competitive edge. Most of these job loss, unemployment, economy meltdown are caused by government mismanagement.
    ZDNet Gravatar
    LBiege
    25th Mar 2010
  • All reasonable points
    However to finger just GOV in this great modern sell-out is shortsighted to say the least. Far too many American institutions have morphed into multi-national entities, accountable to no one but the international financiers backing them. They feel NO allegiance to America, or American citizens.

    Then you have the arrogance of that corpulent, self-serving leadership cadre found on Wall Street and throughout the Fortune 500. Annually awarding themselves like princes for performances good or bad, which is a far cry from even 50 years ago when a degree of ethics and personal accountability still survived.

    Forget the selling-out factor that puts more and more Americans out of work, and more importantly, DECENT paying work. It's these same fat cats who influence monetarily many election outcomes, and at every level now. Is it any wonder government lackeys large and small serve them so well?

    GOV/CORP has synthesized into a twin headed dragon, one that is helping bring down all but an elite chosen few. The higher the level, the worse the impact - and deceptions they spin.
    ZDNet Gravatar
    klumper
    25th Mar 2010
  • ZDNet Gravatar
    ExEm2SS
    25th Mar 2010
  • How is that "hope and change" for ya...
    Looks like the welfare and food stamp programs are growing...
    wink
    ZDNet Gravatar
    Linux_Distro_01
    25th Mar 2010
  • There's an App for that
    How many iPhone apps are written in India?
    ZDNet Gravatar
    guihombre
    25th Mar 2010
  • RE: Growth 'phenomenon' in offshore services keeps India in lead
    Same issue in the UK as the US. My basic question to
    governments is why not tax companies who choose to
    offshore. The consequences of offshoring inevitably leads to
    a lower level of available skilled and non-skilled jobs. This in
    turn leads to an increased need and reliance on the countries
    welfare state. At what point are governments going to wake
    up to the bigger picture.
    ZDNet Gravatar
    jkiddell@...
    26th Mar 2010
  • RE: Growth 'phenomenon' in offshore services keeps India in lead
    The more the US outsources the longer it wil take to put Americans back to work. We are shooting ourselves in the foot. Welcomme to America the new 3rd world country!! But big business does not care. The ones at the top of companies that outsource everthing possible got theres so they don't care if the rest of America starves to death!! India good english??? Thats a joke!!! Did you ever try dealing with one of there call centers??
    ZDNet Gravatar
    drtomsnot1
    1st Apr 2010

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