India’s Information Technology (IT) is much ahead of China in the global market, but Chinese firms are fast catching up and doing very well in areas such as Artificial Intelligence, autonomous driving, e-commerce, and cloud services, a top Chinese IT expert said.
But unlike Indian IT companies, which largely derive their revenues from outsourcing , Chinese IT firms are domestic-oriented, said Mike Liu, the author of the book titled ‘The Rise of Indian IT’, reported PTI. More than 95% of Chinese IT firms’ revenues are generated domestically, he added.
Indian software companies are much ahead of Chinese players in the global IT market.
Mike, who worked with Infosys for years, told PTI that Chinese companies are not a threat to Indian companies in the global market. He spoke to PTI ahead of the book launch. The book, recently published in Chinese, provides insights into the development of Indian and Chinese IT sectors over the years. It will soon be available in English.
Mike was the Chinese-born global Country Head for Infosys in Greater China region. He is the former Managing Director and legal Rep for DXC Technology in Greater China region.
China IT industry generated revenues of 5.456 or $797.26 billion from January to July this year, growing 10.3% on a year-on-year basis according to China’s Ministry of Industry and Information Technology (MIIT).
The IT sectors of both the countries contribute about 8% to their respective GDPs; however, the Chinese IT sector is much larger on an absolute basis owing to the massive size of Chinese economy, Mike said.
“I foresee Chinese players still have a long learning curve to compete in English market. Chinese people often ask, why have Indians become so predominant in business in America? The typical view is Indians speak good English. But that is maybe one per cent of the factor,” Mike told PTI.
Chinese IT firms have a long way to go before they can make a significant dent make a dent in global markets.
He added that Chinese companies need to learn things such as mindset, management systems, and governance; however, China leads on IT technology and innovation fronts.
He said Chinese companies have taken a lead on some of the high-value cutting-edge aspects of IT such as AI, automated cars, and cloud services.
