The ascendency of India as an economic world power

I stated yesterday that for the next few days I would like to write a series of entries about India and China. Today, I like to address the issue of outsourcing. It is surely the main strength of Indian economy now. India is earning a lot of money in this sector and more and more western companies are joining the bandwagon and sending their jobs to India. On the other hand, China is yet to see substantial success in this sector.

India has set a target of earning $60 billion through IT export by 2010. China has become serious about it and Chinese government has taken a number of steps in this regard. It seems that the Chinese efforts are paying off to some extent. At least, China is reducing the gaps with India in the call center industry.

Financial Express Bangladesh reported:

China is fast catching up with India by offering cost-effective outsourcing services with the latest success being US telecom giant Avaya setting up a large facility in the country, a research firm said.

According to a recent report from Callcenters.net, an Asian research firm, China's call centre industry is set to grow 22 per cent this year.

The size of the industry's labour force, including bank hotline services and IT companies' technical support staff, will hit 158,000 this year, up from 130,000 last year, registering a 22 per cent increase.

 

Indian decision makers need not be worried about Chinese leaps in call center industry. China cannot cause any worry for India in short term. However, India should think of the future too.