Description
Topic: Insights into China’s bid to compete with India in outsourcing and offshoring, critical success factors, major areas of competition, barriers
Provide a clear, specific and succinct research topic of relevance from any of the lecture topic and compile a paper (10-15 pages in length 12 point Calilbri Font, 1.5 line spacing). Up to 3 additional pages at the end of the paper can be added for an Appendix. Appendix should be for illustrations, graphs, and cite the references used. Use MLAstyle of citation for the references. The paper can be based on any of the topics listed in any of the lectures or relevant topics in management of information systems, information security, leadership, team communication. The topic is the approved topic from the start of the class.
grading standard:
- Introduction and thesis (10)
- Quality introduction that grabs interest of reader and states the topic
- Thesis is exceptionally clear, well-developed, and a definitive statement
- Good setup for main research sections
- Content knowledge: quality of research(30)
- Well researched topic
- Excellent analysis of the topic and supporting evidence sited from at least 3 articles in a logical manner
- References are sited correctly and flows well with the content
- Content application: support of thesis and analysis (40)
- Exceptionally critical, relevant and consistent connections made between evidence and thesis
- Excellent analysis of the topic
- Creativity and innovation
- Conclusion (10)
- Quality summary of thesis argument with concluding ideas that impact reader
- Does not introduce new ideas or information in the conclusion
- Writing(10)
- Paper if free of grammar and spelling errors
- Up to 10 references
- Reference section is properly formatted
- Used page numbers
Explanation & Answer
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Chinas Bid to Compete with India in Outsourcing and Offshoring
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Chinas Bid to Compete with India in Outsourcing and Offshoring
Introduction and thesis
Outsourcing gets defined as a practice in business in which the functions of a job or the
services of a company get sourced from a third party, giving the third party authority to
perform the functions instead of the company using its employees. For example, in a business
that needs to develop software and realizes that none of its employees have the necessary skill
to develop effective software, the company can decide to hire someone like an individual
contractor to develop the business's software. The decision by businesses to outsource is based
on the situation with significant benefits, including achieving an increase in flexibility to meet
the commercial and business conditions that are constantly changing, get access to resources
and skills, lower the cost of investing in internal infrastructure, increased efficiency among
other benefits depending on the needs of the business. Offshoring entails the relocation of the
processes of a business from one country to another. For example, a company in the United
States having its products produced in Mexico. Offshoring also plays a significant role in helping
the company reduce costs. In this case, the costs of production of products internally. When it
comes to being the most attractive outsourcing location, India takes the lead. At the same time,
China follows coming second. Most companies engage in offshoring to India, not because of the
low labor cost but because of skill availability (Bhattacharjee). This arises from the act that India
produces up to 1.5 million graduates of engineering every year, most of which are software
engineering graduates.
India is widely known and recognized for producing the best IT experts and engineers,
especially in software engineering technology. China is also well known for the same, but it
engages less in the international markets than India. The major areas of Competition between
China and India in offshoring include workforce availability and the skills that both countries
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have. However, what makes India the most preferred location for offshoring and outsourcing is
that it has an infrastructure that is developing fast, favorable government policies, and its
immense workforce. The advantage that China has to relate to its high population is getting
affected negatively, especially with the one-child policy, which is causing a reduction in its
population. The one-child policy is a significant barrier for China to get ahead of India in
outsourcing and offshoring. A critical factor of China's success in this bid includes its culture,
some of whose aspects are salient for outsourcers make it more desirable for them. The high
rate of literacy is another aspect that would make China preferable for outsourcing and
offshoring. The reason people offshore to China is to reduce the cost of labor because China has
a significantly high population making it easy for businesses to get cheap labor. In the
Competition for outsourcing and offshoring, China bid to compete with India because it has a
higher population than India and is working on training its youth in English literacy and other
languages for them to be fit for the job market in the West. India's advantage arises from the
fact that it produces the highest number of engineering graduates every year compared to
China, especially in software engineering. For China to achieve a competitive advantage over
India's supremacy in the Information Technology Outsourcing market, it will take a significant
number of years. The choices to whether a business should outsource and offshore from India
or China depends on what the company is seeking and the specific interest it seeks to achieve
by making that decision. This paper seeks to discuss in detail the bid by China to get into
Competition with India in outsourcing and offshoring, the critical factors of success, the major
competition areas, and barriers.
Critical Success Factors
The critical factors of success have been established to play a vital role in influencing the
performance of the project across multiple industries in the offshoring relationship. There are
many factors that play a significant role in determining China's success in its Competition
against India in outsourcing and offshoring. Some of these factors in CSFs for MIS
(Management Information Systems) include the language factors, cultural factors, time zone
factors, environmental factors, organizational factors, communication factors, technology
transfer factors, project factors, and team factors. Specific to inter-organizational systems,
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related to the software management systems include assets that are IOS specific, sharing
routines for IOS knowledge, the complementarity of IOS systems, and the governance of IOS
systems (Chang). Among these factors, the one that has the most influence on the success of
offshoring in China is the governance of the IOS, and the one with the least impact is the
complementarity of the system.
Cultural factors
The cultural factors have a significant impact in influencing China's success in its
Competition for offshoring ad outsourcing with India based on several reasons. The first reason
is that China's ability to understand the culture of the country in which it is engaging in the
offshoring activity is vital for the efficiency in the performance of the project (Liao). However,
there will always be some differences in culture. For this treason, Chinas ability to manage the
cultural differences will be vital in establishing whether it becomes succe...