NEW DELHI (AFP) -India must make a huge push in education, human resources and infrastructure to ensure it is not overtaken by China as a global outsourcing destination, the industry’s top body warned on Tuesday.
China is unlikely to catch up “to India’s lead in global services sourcing in any significant manner over the next three to five years,” said Kiran Karnik, president of the National Association of Software and Services Companies, or Nasscom.
However, China “must not be ignored,” he told reporters.
“When I look in the rear view mirror, I don’t see anyone there yet but I know they (China) are out there and that they can move very fast,” he said.
China has come a long way in establishing itself as a destination for information technology sourcing with the government and industry working towards improving the regulatory environment and increasing the talent pool, Karnik said.
“While India continues to be the most favoured destination by far” for global outsourcing, “we need to ensure that we maintain this position in the years to come,” he said.
“This will require a favourable policy and tax environment, a huge thrust in education and human resources and vastly better infrastructure,” Karnik said.
Nasscom said in a report the Chinese government is keen on promoting information technology and BPO.
“Rapid progress on the ‘tangible’ aspects of infrastructure and capacity creation is evident,” it said.
China has the potential to develop a large information technology-business process outsourcing (BPO) industry thanks to its substantial domestic market, sizeable educated workforce and strong government emphasis on developing the sector, Nasscom said.
“We know China is moving ahead very rapidly,” Karnik said.