IT outsourcing to China increases despite drawbacks

[Aramsogo]

In 2011 , It exports are 69 billion $. Growing at 18%

India's software exports seen up 16-18 pct in FY12 | Reuters

Exactly, $69 billion is $31 billion off from $100 billion. I knew he pulled it out of his butt. I suppose you are going to tell me in India $31 billion is a rounding error. Also, discount that number by 14% (how much your currency has recently fallen) and we are at $59 billion (almost half of $100 billion). We can build Austrian villages AND we can do Math.

 

[Johnson Dsouza]

DMIC is part of NMIZ

Ohh...thanks for enlightening me...just read about NMIZ few days back but didnt dive deep into it...but hope DMIC which has made some progress does not get delayed because of NMIZ...

 

[IndoCarib]

Exactly, $69 billion is $31 billion off from $100 billion. I knew he pulled it out of his butt. I suppose you are going to tell me in India $31 billion is a rounding error. Also, discount that number by 14% (how much your currency has recently fallen) and we are at $59 billion (almost half of $100 billion). We can build Austrian villages AND we can do Math.

Try comprehend please. 100 billion $ is the total IT revenue & 69 billion is the export.

And 59 billion $, is out of your butt as you put it. Have some shame

 

[Aramsogo]

^^^
Now we get the usual Indian Backtracking when called out about made up numbers. This is what he wrote:

"india will soon reach 100 billion dollar mark in IT exports(96 billion $ currently)...and now india is setting foot in manufacturing with new NMIZ policy...lets see how things go in next decade.."

 

[IndoCarib]

^^^
Now we get the usual Indian Backtracking when called out about made up numbers. This is what he wrote:

"india will soon reach 100 billion dollar mark in IT exports(96 billion $ currently)...and now india is setting foot in manufacturing with new NMIZ policy...lets see how things go in next decade.."

nobody is backtracking. with 18% annual growth 100 billion export target is not far away. At present it is 69 billion $. BTW you may want to show some link to prove 59 billion dollar claim you made. I know that Chinese IT export is only 1.5 billion $. Is it total IT revenue ? Give us some proof please

 

[Aramsogo]

The $59 billion is from a change in the value of the numeraire. As the value of India's currency falls,
so does the value of its exports in dollar terms. Why is this so hard!! $69b is not $100b. He pulled it out of his behind.

 

[kingkobra]

i have used exports by mistake for revenues...96 billion $ is current revenue out of which 2/3 comes from exports...do the math..also with 18% growth 100 billion exports mark is just few years away..

 

[qwerrty]

The $59 billion is from a change in the value of the numeraire. As the value of India's currency falls,
so does the value of its exports in dollar terms. Why is this so hard!! $69b is not $100b. He pulled it out of his behind.

it's even lower..lol..that $69 billion is an estimate for 2012, not 2011.

from his own source..

http://in.reuters.com/article/2011/02/02/idINIndia-54597320110202
The National Association of Software & Services Cos (NASSCOM) forecast export revenue of $68 billion to $70 billion for India's showpiece outsourcing sector in fiscal 2012.

India's IT sector, whose clients include General Electric and Citigroup, would see export revenue rise 18.7 percent to $59 billion in fiscal 2011, NASSCOM said.

and for comparison..

Profile of China's software industry in Jan-Oct, 2011
[November 28, 2011]

BEIJING, Nov 28, 2011 (Xinhua via COMTEX) -- Business revenue of China's software industry surged 32.9 percent year on year to 1.497 trillion yuan ($235 billion) in the first ten months of 2011 and the growth rate was 3 percentage points higher than that for the same period of 2010, according to a report released by the Ministry of Industry and Information Technology (MIIT).

Table 1: Business revenue of different sub-sectors of the software industry in Jan-Oct 2011 Service category Revenue (billion yuan)
Software products 515.3
System integrated services 317.6
Embedded system software 242.6
Data processing & operating services 226
IT consulting services 148.7
IC design 46.8

-- Exports of software and outsourcing of services China's software industry realized 23.9 billion US dollars in exports in the first ten months of this year, up 17.1 percent year on year..

*ttp://www.tmcnet.com/usubmit/2011/11/28/5956052.htm

 

[rcrmj]

^^^
Now we get the usual Indian Backtracking when called out about made up numbers. This is what he wrote:

"india will soon reach 100 billion dollar mark in IT exports(96 billion $ currently)...and now india is setting foot in manufacturing with new NMIZ policy...lets see how things go in next decade.."

man you are destorying one only thing that intocraps guy can mentalmasturbate on it.

and their line of thinking of development is like bollywood movies as achievement and good things always come out of day dreaming

 

[pandarunner]

A balanced article, I think India has an competitive edge over China on IT service sector on international market, and there is not so much China can do to change this scenario. For Chinese IT companies, what they are worrying is not being challenged by Indian or Philippine competitors, but a potential domestic market they have to wait for a decade to be mature enough. I think it is right that Chinese IT companies should focus on domestic and east asian makets.

 

[lcloo]

Unlike out-sourcing of IT in India and Phillipines (cheaper than China), foreign companies' "out-sourcing" in China was not aim mainly in reduction of costs for IT products for their own countries and international markets, but to set a foot into China to grap a share of the over $230 billion domestic IT market.

China is the world's largest mobile-phone market with 900 million users, and also has more than 300 million internet users, IT services is a huge cake but the software must be in Chinese, therefore it is necessary to "out-source" in China if western companies want a piece of the cake.

Lastly Chinese IT industry need not compete with India and Phillipines for export market, they already have a huge market of over $230 billion in China to keep them busy.

 

[FairAndUnbiased]

Indians have to learn how to speak Chinese soon if you want to outsource from Chinese markets.

 

[beijing consensus]

indians talked a big talk in here and got burnt.

just like its retail FDI issue, big talk but firing blanks when it comes to action.
just like the commonwealth games, big talk about everything, but miserable show with dreadful infrastructure and turned into a total farce with feaces all over the athletes villages.

 

[artie]

indians talked a big talk in here and got burnt.

just like its retail FDI issue, big talk but firing blanks when it comes to action.
just like the commonwealth games, big talk about everything, but miserable show with dreadful infrastructure and turned into a total farce with feaces all over the athletes villages.

Anti-virus softwares made in China had turned out to be hidden viruses themselves.

 

[artie]

Indians have to learn how to speak Chinese soon if you want to outsource from Chinese markets.

no necessarily. The Chinese are already English-worshippers. coz using English softwares has become one of their ways to show a higher social status and obtain satisfaction.