IT Outsourcing India

China is targeting a series of tax breaks and incentives in designated pilot cities to encourage its outsourcing industry, which still lags behind powerhouse India, although it is growing rapidly, reports Reuters.

Giving a helping hand to outsourcing firms could also support Beijing’s goals of maintaining employment, particularly for college graduates, as an economic slowdown cuts into their job prospects.

The low skill level of Chinese college graduates and concerns over intellectual property are two of the main factors holding back China’s industry, which, despite annual growth of 20% in recent years, is falling behind in global market share, Alex Peng, a partner at McKinsey & Co, in Beijing, said on Tuesday.

Satyam wins contracts

Satyam Computer Services has reportedly won 15 new IT outsourcing contracts in January, despite revelation of a massive fraud by the Hyderabad-based company’s former founder chairman, writes India Infoline.

According to reports, the contracts have been won from customers in markets such as the United States, Europe, Japan, Africa, the Middle East and India.

Although the new contracts signed in January include renewals, they constitute only a small proportion of the contracts, a company spokesperson said.

Outsourcing scales back

The economic slump has become so pronounced that even outsourcing is getting scaled back, states Business Week.

Executives who once relied on outside firms to handle certain IT tasks to cut costs are now reining in some outsourcing plans on concern they’re too expensive.

Just ask Steve Budny, director of global outsourcing at Oceaneering, a supplier of equipment and engineering services used in the offshore oil and gas industry.

Source : http://www.itweb.co.za/