In August we had a post up titled "China & India IT Outsourcing" in which we highlighted a pool in which 35% felt that China will overtake India as the next hub for IT outsourcing services by 2020? and 50% felt that it wont. Well the discussion is back with the comments from the China International Software Outsourcing Summit 2006.

Some facts from the conference/analysts:

• In a few years time about five to 10 per cent of US and European software outsourcing will be diverted from India to China.
• A recent survey shows that in the mid-1990s, only 15 per cent of China's software companies were under contract to foreign companies to provide outsourced software, but in 2005 the figure had climbed to 40 per cent.
• The global service outsourcing market is worth between 300 billion and 500 billion dollars. Business insiders have predicted the market will reach one trillion dollars in 2008 with an annual growth of 7.9 per cent.
• India, the world's biggest software outsourcing contractor, exported software worth USD 23.6 billion in the 2005- 2006 fiscal year,China only exported USD 3.59 billion worth of software that year.

Source: 1

Prashanth Rai