Tuesday, June 12, 2007

BPO: India far ahead of China

China''s push to become an alternate BPO hub for MNCs tackling soaring wages and high attrition rate in India remains a distant dream as its offshore market is developing slower than expected, a study says.Despite significant government support and huge level of visibility on the global arena, China''s offshore market has not taken off as expected and still has a long way to become a potential alternative to India, technology research firm Forrester said in a report.

Multinational firms, considering China as a ''quick-fix'' solution to deal with rising costs and high attrition of employees in other offshore locations like India, would be sorely disappointed by the country''s slowing offshore momentum, the report said.

When we first looked at China''s offshore and global delivery model nearly two years ago, the country was widely viewed as the key challenger to India for offshore supremacy.

However, our latest research shows that to date, the market has not taken off as expected, John McCarthy, Forrester''s vice-president said.

No comments: