IDC states that China can become an outsourcing center of Asia

Is India’s software services industry light years ahead of China? Or are the Indians about to lose their lead to the up-and-coming Chinese? Over the past few days, two very different answers. According to a new report from IDC, the Indians have reason to worry. The research firm, headquartered in suburban Boston, has announced that its analysts have come up with a new “Global Delivery Index” that, according to an IDC statement, “compares 35 cities in the Asia/Pacific as potential offshore delivery centers, based on a comprehensive set of criteria such as cost of labor, cost of rent, language skills and turnover rate.” This new index puts Bangalore No. 1, with Mumbai No. 3 and Delhi No. 4. (The only non-Indian city among the top four is Manila, at No. 2) But “Chinese cities are on the rise and closely nipping at India's heels,” IDC adds. “IDC forecasts that Chinese cities will overtake Indian cities by 2011 due to massive investments made ( e.g. infrastructure, English language, Internet connections, technical skills, etc) which are favorable towards offshoring.”