New Trends in Global Offshore Outsourcing: A Comparative Assessment of India and China

Abstract

With the rapid rise of globalization, the challenge of global outsourcing today is not “Why and what to outsource?” 

but “How to outsource?” The theme today is “Let us do it right the first time.” The barriers to outsourcing are

 companies’ own mind-sets, local regulations, and the robustness of their internal processes. The domain 

knowledge in many industries has gone fully global. Likewise, new product development and R&D must be global in

 order to compete in emerging economies and to tap into global talent to compete globally. Software development 

and IT outsourcing can be done from anywhere, virtually! The availability of mobile technology and superior digital 

infrastructure is giving way to “distributed IT,” making “homes” as the future nodes of outsourcing factories. China 

and India have emerged as the major leaders in this industry due to their capacity, talent pool, and lower cost 

structure. This chapter compares their strengths, challenges, and growth potential based on the authors’ own 

hands-on experience of doing outsourcing in these countries for the past 15 years.

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Author : Shatodal

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