Indian Companies’ Challenge in China

Overview:

For years now Indian companies have tried to permeate the Chinese market by investing in developing centers, sales offices and various service operations. Although some major companies such as TCS, Wipro, to name a couple, have proven to be successful on a global level, they are still falling short when it comes to tapping into the potential of the Chinese market. They have been able to indirectly work themselves into the market by offering services to subsidiaries in China, but are still working to create their own inroads into Chinese companies.  Some may wonder why it’s so difficult for Indian companies to break through that barrier with their competitive pricing and expertise, this is where competition comes into play.

Observation and Opinion:

Back in the 1990’s semiconductor manufacturing and software development became the new focus of China’s development goals. As a result of the shift in focus, competition between Chinese and Indian companies was inevitable. There is more to creating a prolific and established business in China other than technical excellence. Anyone who has worked or done business in China can attest that knowing the culture of how business is conducted is imperative.  Business culture skills, language, trust and reliability are a huge factor when it comes to breaking in and doing annuity business in China.

During a meeting of the Indian IT industry, the Indian Counsel General stated that the Chinese software industry is disjointed lacking in important areas such as expertise and quality. He forecasted that the Chinese companies would never rival Indian companies due to the lacking elements in experience and quality. However, major Chinese companies such as HiSoft, and iSoftStone proved the Counsel General wrong by making a name for themselves and conducting successful IPO’s in the US and Europe. Solutions and suggestions as to how big Indian IT players can start localizing their businesses will be addressed in up and coming articles.

Financial Funding From Venture Capital Made Easy with Strategy Consultants

Money or lack thereof is the determinant of whether or not a business has a chance to get off the ground, and strategy consultants can offer their services to ensure that you get the financial backing you need. Anyone who has tried to set up a small business or office space, knows just how much costs to set up the space as well as payroll.

Affluent individuals as well as firms that look to invest in startup companies they believe to have potential and a novel product, can be the backbone and means of operation to that startup company. Such individuals or firms are popularly known as angel investors and venture capital, and is one of many sources or resources that strategy consultants can help set up.

One thing to remember is that this type of funding is not free or gifted and there are risks involved when accepting funds. One way to look at it is a partnership, and with any partnership there is equal say for both parties, such with venture capital or other investors within a startup company. Upon contractual agreement of funds, part of the collateral between investor and company are funds paid back or equity within the company. In giving investors equity, they have the power to decide what direction to take the business or terminate anyone they feel is not producing positively in the growth of the company.

With risks instated, the issue of financial backing still weighs heavily on the shoulders of the business. Strategy consultants can help to reduce the risks by introducing investors who are not in it for control of the company, but with the intent to help and see a business get off the ground and become successful.  To maximize competition between investors or capitalize on the amount of money invested, strategy consultants can help present a list of great venture capital firms and angel investors that have your company’s best interest in mind and can help grow your business into a fruitful and successful operation.