Indians can be at peace regarding competition from the Chinese software outsourcing industry in the coming years.
A recent McKinsey study of China’s software outsourcing sector revealed that it will be many years before China poses a threat to its continental rival, India in this arena.
China’s spectacular economic success has prompted speculation that the country’s software outsourcing industry could soon compete with India — and that was what prompted McKinsey to undertake the study to check ground realities in the country.
“To compete with India, China will have to consolidate its highly fragmented industry to gain the size and expertise needed to capture large international projects. Currently, there is little movement in this direction,” said McKinsey in the study.
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