Is China India's biggest rival in IT services?

Excerpt from a Gartner report: The 10 leading countries in Asia Pacific included the undisputed leader in offshore services India, with China remaining the greatest challenger in terms of potential scale.

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http://www.gartner.com/it/page.jsp?id=1329213

Bangalore: China has become the second largest industrial manufacturer in the world, says a United Nations Industrial Development Organization report. According to the report 'International Yearbook of Industrial Statistics 2010', two more developing countries - India and Brazil - figure in the list of top 10 industrial manufacturers globally at the ninth and tenth positions. 

Germany ranks fourth, followed by France, the United Kingdom, Italy and Russia. "With this development, China unseats Japan and is trailing behind the United States," UNIDO said.It added that China's share of the global total of manufacturing value (MVA) was at 15.6 percent, slightly higher than Japan, which stands at 15.4 percent.

The United States maintains its number one spot at 19 percent. While China has a lead in absolute amount of production, the UN also pointed out that Japan is still the world's most industrialised country, in terms of MVA per capita, totaling nearly $9,000 compared to $700 for China. The three countries, U.S., China and Japan produce half of the world's manufacturing output, UNIDO said. 

Source:Silicon news bureau

        I am not sure of the word biggest! However I can say China is one of the potential countries who can dominate the world in IT services. China is the fastest growing economy for the past 30 years. I don’t think I should tell about our growth in the last 30 years. We have traveled a long way in this sector. India has set its bench mark in IT services. IT service Industry around the world adopts the standards and quality we set! However, I would never say we are untouchables! Coz China has already proven that they can deliver in IT Service Industry. World is looking at their improving pool of talented engineers esp. in the R&D space. 

As I said earlier, India is known for its quality however China for its enormous quantity they can create. So all they lack now is quality in the services they offer to the world. World economy knows this. English language skills are rapidly improving! I hope we wouldn’t argue that China is better than India in technology. We are only better in delivering the technology. What happens when China attains the quality level we render now? We will seriously face trouble? The low operation cost and stable social and economical environment will be catalysts to the growth. China’s government with its liberal policies has always been supporting foreign investments 

China is not a toddler in IT services now and will grow in lightning speed as they did in all the sectors till now! 

So looking at the way we run our show and them, I would say that China can be/is one of the biggest rivals to India in IT Services. We need to understand one fact here! All the major IT Service industries of India are trying to build their centers in China! Are these centers to support Chinese companies! No, it’s for the same clients we support or give services to. The only difference is that they stay behind the screen as of now! What will happen, once the same companies or the world economy finds that China has the potential to be on the stage? I say we need to consider China as the biggest competitor of India at any time in IT Service.

Sure, they are getting ready for ENGLISH which is the only weakness they have, they are 100 times dedicated to NATION, their job and work harder than average Indians. In Hardware no one can beat Chinese in the world, they are gearing up to become no one Economy in the world and have full focus on Software Development. The elephant has started moving and many companies will get crushed under them. Wait for 5 years to see this change.

Two factors in the "no" interest me;lawlessness?Well lets look at India-we have umpteen English dailies that portray nothing but rape and murder.And the visual treat is our TV's-you have picturisations that no decent country would ever show close up. Secondly when it comes to money...well ...who cares?

Thirdly..trust?I work  with the  West and I can tell you the number of times I have been told upfront that they don't trust Indians...and unfortunately for me,my bretheren have proved they were right!!

And number of Engineers?Really?How many of them are employable?if they were, why are they working in BPO's?What about all other fields-this craze for Engg and Medicine and third rate MBA programs is costing this country dearly.We have a very lopsided growth that in 5 to 10 years we will lead to  a shortage of skills and other expertises

Gowri

India’s areas of competitive advantage (beyond wage arbitrage) are scale and process maturity. Other destinations simply cannot match the ability of Indian companies to offer large pools of talent to dip into (in terms of breadth as well as depth) or to ramp-up their teams quickly. A lot of non-India-based shops are struggling with the challenges of managing process quality in very large projects, whereas most India-based companies have already built a fairly good track record in this regard. However these are not sustainable competitive advantages.

China has the potential to match and surpass India’s strengths in terms of both scale as well as process maturity, given the size of their literate population and their culture of rigour and discipline (which is being applied even now to learning English as well as learning large scale process management). Other than China, there aren’t too many countries that represent a real threat to India at this time. Regions such as Latin America are rapidly emerging as attractive alternatives, but have a long way to go in terms of ability to scale beyond a point and establishing a track record of process maturity (which takes time). The competitive threat from China on the other hand is both real as well as imminent.

One has to visit China to understand why they can be and will beand are a threat  .

Frist we pride ourselves on our English speaking ability.China has imported experts from native countries to help people learn the language.

The second,is the sheer size of the universities.The students average about ten thousand and some have faculty of few thousands!!

Third is the discipline-they are so hardworking with very little chalta hai attitude or ego hassles.

Fourth is the way they showcase themselves:the cities were stunning

So as many business leaders in India have been warning we have to give up our complacency and plan for the future

Gowri

I agree with this news. From past few years, China has shown a remarkable growth in the IT industry and within a very less time, has become a big competitor to India. Even countries like USA are comparing China and India as the two prime sources of IT geniouses. So taking in consider all these factor, I believe China, presently is a threat to Indian IT industry