Software Outsourcing India teaches lesson to China

Wednesday, January 04, 2006

Today, Software Outsourcing India is known as the Deming of software, Technology is playing a big role in China’s rise as a world economic superpower, but that nation still lags in one area that is Software Development and the neighbor country giving tuff competition and teaches a lesson as well. IT is to be estimated that annual revenue for Software Outsourcing India will grow from $5.7 billion last year to $87 billion by 2008.

China has a ways to go, as a provider of outsourced software services by developing software programs for countries like America or other firms seeking low-cost, high-quality work. In global force in high Information Technology, Software Outsourcing India will be playing key role.

By adding consulting services, over all the Software Outsourcing India has improved their quality and delivery methods, they have moved upstream to sell more complex, and lucrative, software products. They started writing basic code and testing programs on their own. The key factor is low-cost, high-quality labor attracted clients from all over the world.

The Software outsourcing company from china such as Beyondsoft and Freeborders are taking hard lessons from India, but it has its role model. Both firms have big dreams of building a vibrant software outsourcing industry in China.

As the world is giving so much opportunity in software development industry, now it’s China’s turn to climb that ladder of progress. The requirement for country is explosion of new highways, ports, buildings and the rest of the infrastructure, which needed to build a strong Information Technology industry. Government is also helping by investing in this industry. More than 300,000 graduates with tech degrees each year helps that China to churn out. Competition is growing fast in world, so the Chinese government wants to move the national economy from low-end manufacturing to more high-end tech services.

Software Outsourcing India

The Software Development field in China remains highly fragmented. Actually the country is home to thousands of software makers, but few employ as many as 50 people, but no clear leader have emerged.

That field’s sales should reach $1 billion this year, as the market tracker forecasts average annual growth of more that 50%, reaching sales of $4.7 billion. There are so many organizations in the world’s most populous country that China’s software outsourcing market already has some heft.

But China is giving tough competition to Software Outsourcing India by already the largest offshore outsourcing base for Japan, which will account for $225 million of that $1 billion last year.

Those are key markets for china to expand their footprint, by planning to follow the Software Outsourcing India by making small strategic acquisitions.

China must take cues from India if it wants to grow more, Just as Software Outsourcing India has built a strong reputation for serving the financial sector, and China could also pursue clients in manufacturing and retail.

The Software Outsourcing India is now really climbing up the industry value chain, there’s no way China can touch them yet, because presently India is a clear model for success.