Tuesday, November 09, 2004

China Competing For India Outsourcing

Yahoo Sigapore reports some companies are looking to China for their offshore software applications as rates rise in India.

"China's structural cost advantage over India is massive, and I think it's long term," said Freeboarders Chief Executive John Cestar.

"We don't have any wage inflation in China and we haven't for the last year and a half, and the number of really high-quality graduates coming out of this system is stunning."

Freeborders China, one of the largest foreign-owned IT outsourcing centers in south China, has 225 employees in their development laboratory in Shenzhen working for over 400 companies. While this number pales in comparison with some Indian firms with thousands of employees, Cestar sees potential for growth.

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