The Information Technology Outsourcing Advantage: India vs. China

Abstract

This study evaluates India and China as destinations for Information Technology (IT) outsourcing on five main parameters: workforce, capital investment, infrastructure, governmental policies, and the economy. While India would appear to have an edge in workforce and the economy, due primarily to its huge English speaking and software trained population and a more sustainable economic growth; China leads in investment and infrastructure as it offers much better financial incentives to companies. Based on our overall assessment of these five factors it, is concluded that India at present appears to be a better destination for IT outsourcing.