Monday, October 05, 2009

The Indian vs. Chinese legal outsourcing industry

In a detailed analysis of legal outsourcing industry of the world’s two most prominent growing economies, Jalal Alamgir and Matthew Sullivan present the strengths of the Indian service sector over the Chinese set-up. The author attributes the strength to mainly four points. They are as follows:
1. Indians with an excellent command over English language and a legal system that is built upon the British system gives them an edge to their Chinese counterparts academically.
2. Investments made by the federal and state governments in the IT and BPO set-up. Currently most of the LPOs use the same infrastructure facilities.
3. The country that is able to address the two major concerns about information and data security will be able to garner maximum profits out of the business. With Chinese government remaining interested in controlling Internet activity, India will retain a big advantage.
4. Lastly, Indian government has taken major steps to showcase to the rest of the world of it being an investor’s paradise.

The cumulative effect of these points has made India have 37% of the world's share of outsourced services whereas China has managed to get only 10 %.