Is China a threat to Indian software industry?

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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    .
    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……..
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    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

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  • Anonymous

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  • Anonymous

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  • pooja

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  • Anonymous

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  • Anonymous

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  • Anonymous

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  • your research is appreciated a lot……….thank you

  • your work is appreciated a lot…………thank you

  • good points… thank uuuuuu…:):)

  • Anonymous

    thnks 4 d info

  • gr8…thanx..:)

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

  • Anonymous

    thnk u

  • Anonymous

    short but enough

  • Anonymous

    thanks

  • Anonymous

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  • Anonymous

    short& simple.
    thanks

  • Anonymous

    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.

  • Anonymous

    thank u

  • Excellent points for GD point of view

  • thanks
    Excellent points for GD point of view

  • Anonymous

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  • Anonymous

    Its really good….simple and effective points..

  • Anu

    plz provide more information about this topic

  • ajay

    it is simple and easy

  • plz provide more information in favor

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

  • aman

    really nice points for GD…

  • Anonymous

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  • Anonymous

    can u provide some data regarding this

  • Thank u for this Information…….

  • Anonymous

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  • Anonymous

    like 🙂

  • Thank you appu for giving us these gd answers

  • Thank you appu for giving us these gd answers…

  • Rahul

    Spectacular analysis

  • Anonymous

    accha likhte ho beta.

  • @Anonymous thank u 🙂

  • Anonymous

    nice

  • k… I'll try… Thank u for the feedback… 🙂

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

  • Thank u…:-)

  • Anonymous

    thats nice