What are the advantages and disadvantages of China and India in developing service outsourcing?

(1) Geographical advantage: The time difference between India and the United States is exactly 12 hours. In the evening, Indian companies will send completed operation reports to European and American customers who are working. The next morning, the customer review and processing results will be available This has formed a 24-hour operation process, which has greatly increased the customer service efficiency of many multinational banks and raised their service levels to a new level. Apart from being bordered by many countries, China has no obvious advantages, so geographically India is superior to China.

(2) Labor costs China’s current labor costs are much higher than those in India. The annual salary for software and related positions in the United States is US$60,000-80,000. The annual salary for the same position in China is US$8,952, while in India Only $5880. First, the average salary level of employees in China's service outsourcing industry, especially in the software outsourcing industry, is generally higher than that in India. Second, there is a certain gap between the content and talent quality of China's service outsourcing and India. India has entered the stage of development from BPO to KPO, while China is still mainly engaged in ITO and low-end BPO. So India is better than China in terms of human capital.

(3) Foreign language ability of employees English is the language used by most service outsourcing parties. The ability of the outsourcing party to use English directly determines the quality of communication with customers. As a former British colony, English is still one of the official languages ??in India. Coupled with the cultural similarities between India and European and American contractors, Indians can better communicate with customers, understand customer needs very accurately and efficiently, and produce software products according to customers' usage habits. Although English courses are generally offered in China from the primary school level, the teaching often focuses on the instillation of grammar and vocabulary, and lacks the cultivation and improvement of language application abilities. Therefore, the cultural background and language communication skills of Chinese service outsourcing employees are far inferior to those in India, and high-end talents in the industry are even more scarce.

(4) Software talent training model The training institutions established by software companies, led by the National Institute of Information Technology in India, have provided strong low-end talent support for the development of the Indian software industry. The Indian National Institute of Information Technology is positioned to cultivate ordinary talents, downplay the concept of certificates, focus on the cultivation of non-intellectual factors such as work attitude, and highlight practical teaching, with special emphasis on non-technical qualities such as work attitude, expression ability, and the ability to work with other members of the team. Formed, it can train more than 150,000 blue-collar programmers for India every year. In contrast, China's current talent structure is "olive-shaped", that is, there are more software engineers and a shortage of senior talents and software blue-collar workers. At the same time, because China’s education system prefers theoretical indoctrination and pays little attention to practice and team work, the quality of software talents is still far behind India’s.

(5) Infrastructure such as telecommunications and networks. From the IDI scores and rankings of China and India in 2002 and 2007, it can be seen that in 2002, China was ahead of India in both rankings and scores. Ranked 27 places ahead and scored 64% higher. In 2007, although India's score increased by 34%, its ranking fell one place, indicating that its relative development rate lagged behind other countries. China's ranking has moved up 17 places, 45 places ahead of India, and its score is nearly twice as high as India's. The access indicator in the IDI has 5 specific elements, which are mainly used to measure the infrastructure construction level of a country's information and communications technology industry. As shown in Table 2, when comparing the raw data of access indicators between China and India, almost every item is in a leading position, which is consistent with the overall IDI score. It is obvious that China has obvious advantages in telecommunications and network infrastructure construction.

(6) Advantages of sound laws and regulations Sound legal and regulatory support and guarantee are the foundation for the development of the service outsourcing industry. The Indian government formulated the "Computer Software Export, Software Development and Software Training Policy" in 1986, which clarified the strategic goals for the development of the Indian software industry and granted special preferential policies to enterprises engaged in export sales. At first, European and American software contractors were interested in placing their important product development and customer services in overseas regions where intellectual property rights were not yet sound. Concerned The Indian government took the lead in actively adjusting its regulations and policies to protect intellectual property rights and creating an external environment conducive to undertaking outsourcing projects.

On the one hand, in order to improve the business environment and eliminate the concerns of Western companies with grudges, the Indian government has formulated a 10-year IT development plan and provided strong legal, policy and environmental support for software outsourcing. In response to the issue of property rights of outsourced products, the Indian government has promulgated a series of laws and regulations to protect patents and customers' intellectual property rights, and has established specialized agencies to supervise and strengthen the enforcement of intellectual property rights protection. India is moving towards the implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights and has signed many international agreements to crack down on piracy. China has great flaws in its laws and regulations.