Chinese government is very serious about dismantling India from its top position in outsourcing and this can be judged from the fact that the country has zeroed down on ten cities which it would like to develop as major outsourcing centers. The cities which will get a facelift for this purpose are Chengdu, Dalian, Shanghai, Shenzhen and Xi’an which are one of the ten cities which would aid the country in tripling its outsourcing exports by 2010. As of now the figures stand at $900 million.
The country is in the process of convincing a hundred MNCs to outsource their work to China but when compared with India, China’s industry still remains fragmented. Now even India is moving to China for offsetting spiraling wages and a tight labor market.
Up till now India seemed to be the preferred choice but it seems that these companies would also have to think about China too before signing contracts. Let’s see who wins the race- it is a tough fight.
