KPMG released its report on the study of outsourcing development. According to the report, both India and China are named the most popular outsourcing destination in Asia. Moreover, Singapore ranks the third in the research. By analyzing the differences between Singapore and its competitors, we can conclude that the service from Singapore cost more than other Asian developing countries. Due to the strong intellectual property protection, a well-educated talent pool, and overall a more secure and stable pro-business environment, the investors have to pay more in order to meet the need of the regulations in Singapore government and market. On the contrary, owing to the relatively backward laws and regulations in market economy and intellectual property protection, it will definitely help to save the cost.
Furthermore, in order to meet the challenges from other competitors, India outsourcing companies usually have a 3-5 years plan, which will surly contribute a lot to the business expansion and the keep the contact with the main customs. Just as what is said by an expert in economy that outsourcing is gaining steam and companies with no plans to outsource may soon find themselves at a competitive disadvantage. As a Chinese proverb goes Preparedness ensures success, unpreparedness spells failure. Thus, the importance of the developing plan for a company and industry cannot be overemphasized.
In addition, the all-rounded functions of India and Chinese outsourcing companies should not be omitted. For the reasons that they can provide services in the large scales, they are available for many personal demands and unusual orders. The low-cost, less time-consuming and the non-core activities are the core-competition of the outsourcing industry. However, only heritage the tradition of industry routine will broaden and enlarge the business of the industry. For example, many Chinese and Indian outsourcing companies can help their customs to design the strategy, such as research and development, engineering and risk management. In contrast, Singapore companies’ business is merely based on the traditional items, which brings fairly negative impact on the development of the companies.
In a word, outsourcing industry should not be only confined in the traditional routine, but try to search for the virgin land, where could help to promote the business.
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China, India, Outsourcing, Singapore
Since the establishment of diplomatic ties 18 years ago, the two countries, China and Singapore, have developed dramatically to become stable and mature.