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Wednesday, May 18, 2011

Is China a threat to Indian software industry?

Updated on 15-Mar-2014.

In Favor:-
  • China's IT spending is increasing rapidly. Chinese govt is supporting a lot to IT sector.
  • More and more Chinese firms are going private and are able to give tough competition for Indian IT giants.
  • Chinese firms are concentrating more on providing attractive jobs for graduates in IT sector.
  • China overcame the problem of talent shortage as the no. of IT graduates in China is increasing at a great rate.
  • Chinese service providers are focusing more on large scale development and on innovative Research & Development.
  • China has crossed India in the availability of software developers.
  • Many Indian software professionals are not working for India. They are working for foreign countries. More than 100,000 Indians migrating to the United States each year for better-paid software jobs. This is a big disadvantage to Indian software industry.
In Against:-
  • Initially China concentrated mainly on manufacturing sector and now China is the world's largest manufacturer. China's focus on software industry started very lately, and now it is much difficult to compete with the countries like India, which are already among the top most countries in IT sector.
  • Chinese engineering graduates are focusing more on manufacturing sector than IT sector as the China's software industry is unable to offer attractive, exciting and fast moving career opportunities.
  • China is lacking in English-speaking talent pool. So, China cannot overtake India anytime soon on outsourcing.
  • China's outsourcing industry's serving mainly Japanese and Korean companies due to language barriers.
  • Many Chinese service providers are focusing more on domestic market than international market. 
  • China lacks efficient policies regarding data privacy and intellectual property protection.
  • India is producing more no. of engineering graduates than China.
  • Indian graduates are more exposed to processes & systems during their course of studies because of the evolution of IT industry over the last two decades.
  • At present, India is far ahead than China in IT sector and it is developing too fast to catch it.
  • Many Indian IT companies opened their branches in China and are recruiting graduates from Chinese universities. It's a plus for India.
Conclusion:-

                   China is definitely not a threat to Indian software industry as India is far ahead than China in IT sector and the India's software industry is developing faster. Anyway, it's good to have healthy competition. Competition helps both countries to develop themselves.



References :-

  • https://www.fuqua.duke.edu/news_events/feature_stories/china-outsourcing-arie-lewin/#.UyQAbj-SySo
  • https://www.idc.com/getdoc.jsp?containerId=prCN24286613
  • http://www.thehindubusinessline.com/industry-and-economy/info-tech/ict-china-edges-ahead-of-india-in-hr/article5579185.ece

59 comments:

  1. can u pls provide us some technical points which is more efffective for gd at professional level

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  2. k... I'll try... Thank u for the feedback... :-)

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  3. accha likhte ho beta.

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  4. Thank you appu for giving us these gd answers...

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  5. Thank you appu for giving us these gd answers

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  6. Thank u for this Information...

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  7. can u provide some data regarding this

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  8. really nice points for GD...

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  9. plz provide more information in favor

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  10. plz provide more information in favoue of the topic that must be tecnical n reasonable reasons...

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  11. it is simple and easy

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  12. plz provide more information about this topic

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  13. Its really good....simple and effective points..

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  14. it is helping a lot to all individual>>>>>>>>>>>>>>

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    Replies
    1. thanks
      Excellent points for GD point of view

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  15. Excellent points for GD point of view

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  16. i think 'in against'points are more related to the topic comparing Indian & chinese software industries but 'in favour' points are not so related to the topic .but any way u have given me some valuable points in view of against.thanks a lot again.

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  17. short& simple.
    thanks

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  18. thanx!! gr8 work!!! short ..simple..in capsule form!!! thanx again...n god bless... :)

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  19. short but enough

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  20. pls let's address purely technically sound ideas by which the GD will be outstanding and sensefull.

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  21. good points... thank uuuuuu...:):)

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  22. your work is appreciated a lot............thank you

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  23. your research is appreciated a lot..........thank you

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  24. Thanks for d information....good points...deeply examine by u its nice...

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  25. thanks these is very usefull

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  26. Thanks it is very nice and useful matter for my GD

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  27. fine and need a better distinguishing

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  28. easy to understand( simple language), nice.

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  29. plzz provide some more key pts

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  30. Great lines man....keep it up.....and thanx a lot.....

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  31. thanku, please add some more technical point in favore&against

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  32. Nice , it's sweet and short . . .

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  33. some more examples helps it beteer to support the ps. in gd..
    althouh it is nice..

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  34. wow........
    very nice...but...
    plz tell me in deep............

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  35. Despite what is stated here, China is a gowing theat to India and sooner we recognize this and shed complacency, better it is.

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  36. I have a counter viewpoint which I put in a separate blog:

    http://software-ecosystem.blogspot.in/2014/03/is-china-threat-to-indian-software.html

    while the facts presented here are all true, I feel the comparison between India and China in software industry is not fair as the two are not competitors

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  37. the against points are much more related to da topic. thanks fr da ideas

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