China will surpass India and become the preferred outsourcing destination in 2011

The research from IDC predicted that, four years later, the main cities in China would surpass the big cities in India and become the most popular offshore outsourcing center in the world.

An IDC research report pointed out, cheaper rents, lower labor costs and more educated people were still the main reasons for foreign companies to establish outsourcing service centers in Bombay, Bangalore and other Indian cities. However, IDC noted that this offshore trend may be changed in the near future.

According to the analysis report from IDC based on GDI, this organization forecasted that by 2011, some big cities in China would catch up with those in India, and become the global leading offshore delivery destination.

According to some standards, such as the labor costs, rent costs, language skills, mobility, etc, GDI compared of the conditions to be an offshore outsourcing center of 35 cities in Asia-Pacific region.

Conrad Chang, the IDC Asia-Pacific research manager of business process outsourcing, said that comparing the top cities with others, the difference was "the key factor to win a contract”, such as the staffs’ skills and the political risks.

Chan said, "When assessing outsourcing, offshoring, onshoring and nearshoring, there are some different risk factors need to be considered, and obviously, some factors are more important than others."

He also pointed out that, although India had got the highest mark of the GDI standard, it would be changed in the next 4 years.

Although some first-degree cities in china, such as Beijing, Shanghai and Dalian, were considered to be inferior to those in India, they still had the chance to surpass those Indian cities in 2011.

IDC said it was because of the reason that the big investment and improvement of China would attract profitably the offshore outsourcing contracts, such as the investment of building infrastructures, technical skills training, Internet, etc.