A Comparative Analysis Of The Indian Software Services Outsourcing Industry

In order to reduce the cost of business operation and concentrate the company's core strength on the critical business, some enterprises in the developed countries outsource the non-critical software business to the countries with lower labor cost. In this outsourcing wave, India seizes the opportunity to undertake the software outsourcing and plays very important role in the industry. However, China has more and better infrastructure in the software outsourcing industry, there is still a large gap between China and India. This paper studies the reasons for this phenomenon.First of all, the paper studies the causes of software outsourcing industry from a theoretical basis, which includes the value chain, the cost factors and spillover effects. Secondly, the paper analyzes the competitive factors in the software outsourcing industry with Michael·Porter's "diamond model", and analyzes the six characteristics of software outsourcing industry in China and Indian from the model. Studies have shown that the shortcomings of Chinese software outsourcing industry include, the structure personnel is irrational, the capacity to develop international market is not enough, the national excellent corporations in the world are not strong and famous, the software enterprise's capacity to develop and manage is not strong, the relevant supporting policies is not obvious. Thirdly, the paper uses the econometric models to analyze the several factors that affect the size of Chinese software outsourcing industry, and use the number of enterprises which pass the ISO27001 certification as an important influence factors. Finally, the paper gives the corresponding countermeasures and suggestions to solve the problems existing in Chinese software outsourcing industry.