Is China a threat to Indian software industry?

china

Last 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.

Afterwords :- What are your thoughts on this topic? Feel free to express your opinion in the comment section below.

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  • its a wonderfull topic and i realy want to speak about this topic .. – cn you give me some important points about this topic so i improve myself more and more .! and i agree your some point ..
    .
    thnx you 🙂

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

  • 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

  • nice

  • ty

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

  • wow……..
    very nice…but…
    plz tell me in deep…………

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

  • zarana makwana

    Nice , it's sweet and short . . .

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