Gagan Kaul Blog

Businessworld has an interesting write-up on India and China IT initiatives. It writes that India is more software centric and China has hardware competence. However, chip design, that is a major component of hardware is something where Taiwan takes an edge over China. Keeping this in limelight, Businessword outlines the strategy that China is pursuing to become a major competitor in the IT industry, which encompasses both hardware and software. However, as the Indian IT companies still strive to look for a niche model, the existing China operations of India companies do not have a work force greater than 200. Major reasons cited are the inability to win major contracts because of a non-transparent bidding process.

However, software companies like TCS are pioneering a new business model where in Indian and Chinese technology firms are combining their skills and jointly penetrating the global IT market. This would result in the Indian software firms gaining excess to the ‘closed-till-now’ China market, and at the same time create an opportunity for the China firms to develop economies of scale in software; a move that can take care of the competition threat by forming joint ventures, and at the same time develop a culture of world-class IT firms in Asia. This is a very interesting article for cracking the market that seemed impenetrable uptil now.