abhishreshthaa
Abhijeet S
INDO-CHINESE RELATIONSHIP
Service sector is India is booming. Experts say that in the of shoring world, India could be the hub and other asian nations, the spokes. But, china is now catching up with the Indian of shoring industry… at the same time,its manufacturing sector in full fledge. China seems to have realized that any sector, no matter how profitable will slump into recession once it reaches the peak. However, in India, the service sector is still being milked dry, while we actually need to shift our focus toward the manufacturing sectors.
The point however, to be considered, is that china need not be a replacement market for Indian talent but a complementary market for growing business in japan and servicing the local Chinese businesses. But setting up a development centre in china is not that simple.
Now, the exit options at the moment are not clear. Even though the cost of a Chinese programmer may be less than that of an Indian programmer, there are other overhead costs which bring the cost of development in china almost on par or above India.
On comparision of all the above costs, India is the best alternative. The Indian firms will have to look at these centres as strategic resources to de-risk.
As far as the English speaking talent is concerned, India will continue to be the base. At the moment, the Indian talent supply looks sufficient. So much so, that there has been no increase of salaries at the entry level for the last 2-3 years. This is probably an indicator of the soon-to-come recession in the service sector.
An attempt has been made in this project to identify the various needs as to why India has to concentrate on industrial development and propel the manufacturing sector that is not being exploited to its fullest potential.
Service sector is India is booming. Experts say that in the of shoring world, India could be the hub and other asian nations, the spokes. But, china is now catching up with the Indian of shoring industry… at the same time,its manufacturing sector in full fledge. China seems to have realized that any sector, no matter how profitable will slump into recession once it reaches the peak. However, in India, the service sector is still being milked dry, while we actually need to shift our focus toward the manufacturing sectors.
The point however, to be considered, is that china need not be a replacement market for Indian talent but a complementary market for growing business in japan and servicing the local Chinese businesses. But setting up a development centre in china is not that simple.
Now, the exit options at the moment are not clear. Even though the cost of a Chinese programmer may be less than that of an Indian programmer, there are other overhead costs which bring the cost of development in china almost on par or above India.
On comparision of all the above costs, India is the best alternative. The Indian firms will have to look at these centres as strategic resources to de-risk.
As far as the English speaking talent is concerned, India will continue to be the base. At the moment, the Indian talent supply looks sufficient. So much so, that there has been no increase of salaries at the entry level for the last 2-3 years. This is probably an indicator of the soon-to-come recession in the service sector.
An attempt has been made in this project to identify the various needs as to why India has to concentrate on industrial development and propel the manufacturing sector that is not being exploited to its fullest potential.