Many American companies have outsourced their jobs to India. A significant number of European and Australian companies have joined this bandwagon too. However, until now, Japanese companies have remained out of India. Well, that is surely going to change in the next few years. I found a report in Forbes- Fujitsu, Hitachi to outsource software development to India – report. Both Fujitsu and Hitachi are more visible in China than India. Now, decision makers of these two companies have realized that India is going to be a more attractive destination for them.
China has basically two problems. China has an aging population. Secondly, China is going to suffer shortage of skilled tech workers. India is going to suffer from shortage of tech skilled workers too. In fact, India is already suffering from it and even companies like Google are finding it increasingly difficult to get skilled workers in India. However, India has a younger population compared to China.
About the plan of these two companies to outsource to India the Forbes report wrote:
“Fujitsu has 1,000 engineers working in China, mainly at its own local operations, as well as 500 in Southeast Asia, but it intends to increase that figure to 5,000 by fiscal 2009, with 2,000 engineers in India, 2,000 in China and 1,000 in Southeast Asia, it said.
Hitachi also plans to increase the number of engineers in India to 540 from 470 at its three local partners during the current fiscal year and the additional workers will be involved in the development of so-called middleware, a sophisticated type of business software, the Nihon Keizai said.”
After Fujitsu and Hitachi who is next?
Being in Japan recently, what I saw were quite a few of the systems integrators, such as NEC, Fujitsu and Hitachi, beginning to open very large outsourcing contracts with China, not India.Japan and the surrounding countries are culturally/language wise much
closer to China than they are to India.
Posted by: PandaPub | October 24, 2006 7:07 AM | Permalink to Comment