New Delhi: Despite the emergence of China and Philippines as competitors in the business process outsourcing (BPO) space, India is well placed in terms of parameters like cost savings, competency, technical infrastructure, language and skill pool, according to an industry report by Icra.

In the BPO field, China is perhaps the biggest challenge in the future and the largest threat to India, and with the largest population and fastest economic growth, Chinese have at least two advantages in the global outsourcing market - manufacturing and IT - the report said.

In terms of outsourcing options, India has a significant cost savings model with multiple competencies in various areas, an emerging technical infrastructure, highly rated skill pool with English language and extensive cultural fit, the rating agency said.

The main disadvantages of China are lack of good quality record in software, whereas India has a better image as quality supplier, Icra said in its BPO industry report.

With low percentage of Chinese population speaking English and a less mature and relatively new BPO industry, India stands tall in these areas vis-a-vis China, it said.

However, China has certain advantages in offering low manpower costs compared to India, and being close to Japan, its BPO market is also likely to grow through the Japanese outsourcing route. As India currently offers no BPO services in Japan, China will capitalise on its proximity to it, the report said.