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March 5, 2008
And Indian competitiveness
As China's competitive advantage shifts (see earlier posting), so does India's. According to Business Week -India Losing Status as Offshore King?:
Fewer global delivery centers were opened in India by the United Kingdom's 20 largest IT services suppliers than in each of the three countries over the last year.
The competitive Indian labor market is driving companies to alternative destinations, say Pierre Audoin Consultants (PAC) in its report.
. . .
China's emergence as a global sourcing hub has traditionally been slow but the report found that BT Global Services, EDS, IBM and Tata Consultancy Services (TCS) have all opened sourcing facilities in the country in the last 18 months.
So, let me get this straight: Chinese manufacturing is moving to India for lower costs and Indian IT outsourcing is moving to China for lower costs.
Only one thing certain in the I-Cubed Economy: uncertainty.
Posted by Ken Jarboe at March 5, 2008 11:58 AM
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