Could government cost cutting be China's Y2K moment?

The UK government wants suppliers to cut their costs immediately and continue to do so over time. There is potential to reduce costs by using offshore locations to deliver services.

Indian companies do not appear on the list of top UK government suppliers for example. So there is scope to farm out more work to India.

But what about China? It is cheaper than India.

China needs a similar moment to the Y2K crisis if it is to catch India as an offshore IT location. Could the fact that governments across the world are trying to cut costs be its Y2K moment.

There are massive challenges in terms of security and IP rights but with the right management in place could China become a UK government back office? Who would have believed India would have ran the back offices of the West’s biggest banks a few years ago?

I doubt it will happen any time soon. I mean people thought it was a scandal when some UK citizen information was sent to a datacenter in India never mind China.

But I couldn’t resist throwing out the question after all the world is becoming a smaller place.



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