Home Page > Publications > September 2010 Quick Hits - News, Trends & Analysis

Germany Opens Its Heart To Offshoring
From the times of India, "Both Germany and India are together in the fight against protectionism, German minister of Economics and Technology Rainer Bruederle said. Speaking at the 17th session of the Indo-German Joint Commission on Industrial and Economic Cooperation, he said, "Free trade...free movement of capital, labour and technology are the only ways for successful globalisation."

These comments were contrasted against the US State of Ohio's ban on offshore outsourcing. While this appears to be a startling opinion reversal by both the US and Germany, the reality is that both sides are striving to find equilibrium. Germany is years behind the US with respect to its consumption of offshore outsourcing, and the German economy and employment situation are in far better shape. When we consider Germany's pivotal role in opening the European economy, it should be no surprise at all.

Is China Really Threatening India's Dominance?
BWorld Online Summarizes the results of a recent Ovum report, "China's outsourcing market may well soon be as strong as current leader India's and could eventually overtake it, but neither country can rest on its laurels... India's share of the market is in decline and China is already providing substantial competition as the world's outsourcing powerhouse in terms of footprint, awareness and capability." It is inevitable that China's outsourcing market share will grow... especially when you consider regional and intrastate outsourcing. It is even more inevitable that India will lose its stranglehold on several outsourcing sectors. What will be interesting to see is how India navigates these changes... by fighting to hold on to what it has... or by doing the very thing that triggered offshoring in the West - pursuing cheaper labor. Increasingly, Indian outsourcers are becoming "mid-shore", sourcing direct or supporting labor from countries like Sri Lanka and China.

 
 

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