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.
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