Outsourcing services to India and manufacturing to China, right? Wrong.
- In recent article published in Hong Kong’s The Standard you can find data about number of call centers employees in India and China. Quote: “The number of employees at call centers in China is likely to rise 22 percent this year to 158,000, while in India the workforce is predicted to rise 16 percent to 312,500, Sydney-based research firm Callcentres.net said Friday“. … “China is particularly competitive in this area, with employee hourly costs of just US$3.62 (HK$28.24), compared with US$4.24 in India and US$18.46 in Singapore, Callcentres.net said. While China has been widely characterized as being up against the formidable challenge of an Indian workforce with far better English-language skills, the report seemed to suggest China did not face any particular disadvantage.__Twenty-nine percent of call centers in China service international markets, compared with 33 percent in India, Callcentres.net said. As many as 93 percent of China’s centers require a proportion of their agents to speak English to customers, the report said.
Is manufacturing powerhouse gradually becoming global competitor to India and Ireland in services outsourcing? When economist discuss more balnced growth in China they usually mention less investments and net exports and more consumption. This is not happening. However what seems to be happening is more balanced growth of value added, with services growth probably accelerating.