What's new

Chinese wall falls for Indian IT service providers

Hafizzz

SENIOR MEMBER
Joined
Jun 28, 2010
Messages
5,041
Reaction score
0
Chinese wall falls for Indian IT service providers - Financial Express

The Chinese government, in a significant move, has informed Indian IT service providers that they can start providing call centre services to Chinese clients. Until now, no foreign company was allowed to provide call centre services for Chinese customers.

To start with, the restriction has only been lifted at the Shanghai Pilot Free Trade Zone. But there are enough indications for IT vendors that the restriction will soon be removed across all trade zones. This will come as a big relief for the $108-billion Indian IT industry, which has been facing stiff headwinds in China.

Foreign companies have always found it difficult to tap into Chinese state-owned enterprises, which account for a large percentage of China’s IT services market.

VR Rangarajan, head of Infosys China, told FE that positive signs have started to trickle in.

“We now hope that market access will increase for foreign companies and that progress in ties between India and China will help us in future,” he said.

Till now, the going has been extremely tough for Indian IT vendors in China. The last 12 months have been especially so. Chinese customers have not been liberal with budgets and the perception of information security risks and rising costs have also impacted growth. For instance, Infosys, which had entered the China market a decade ago, had posted a net loss of $1.8 million during the last financial year on revenues of $104 million.

According to another top official with a MNC player operating in China there have been some positive changes of late. There is some amount of moderate growth in business, he told FE.

The Chinese economy is still growing at a fast clip with 136 Global 2000 companies opening up to global standards of processes and systems. Also, Chinese subsidiaries of multinational companies have started to provide more work to Indian IT vendors.

The decision to open up call centre services at the Shanghai Trade Zone comes at a time when China is trying to adopt new business models and technologies faster. Big data, cloud, mobile technologies and social networks are finding great traction in China. These are about to be utilised heavily in the country’s Smart City initiatives.

The Chinese government has identified 193 pilot Smart Cities and is pushing them aggressively to run through information technologies more efficiently. According to IDC, about $400 billion will be invested in Smart City initiatives over the next 10 years. According to Infosys, many Chinese companies are embracing business transformation by working with technology partners.

However, local IT service companies gain advantage in capturing the growing IT service market in China through their better relationships, more flexible sales tactics and policy restrictions for foreign IT firms.

Sad News. Wrong Move By China !!!
 
Now Indian needed to Chinese now? heee or Chinese need to learn English or Indian, thats odds
 
Now Indian needed to Chinese now? heee or Chinese need to learn English or Indian, thats odds
What are you trying to say dude!...I guess you need to learn some english first...not that it is important..but in a public forum, where english is the means of communication, it is important.
 
Oh god no, get rid of these utterly useless Indian companies. Hopefully no one takes up these Indian companies.
 
I donot see any real benefit for Indian IT providers as China and its company works on less billing than Indian counter part......So it will benefit Indian IT company if they hire China people and employ only...I thing this is the motive of China with this kind of move...


Chinese wall falls for Indian IT service providers - Financial Express

The Chinese government, in a significant move, has informed Indian IT service providers that they can start providing call centre services to Chinese clients. Until now, no foreign company was allowed to provide call centre services for Chinese customers.

To start with, the restriction has only been lifted at the Shanghai Pilot Free Trade Zone. But there are enough indications for IT vendors that the restriction will soon be removed across all trade zones. This will come as a big relief for the $108-billion Indian IT industry, which has been facing stiff headwinds in China.

Foreign companies have always found it difficult to tap into Chinese state-owned enterprises, which account for a large percentage of China’s IT services market.

VR Rangarajan, head of Infosys China, told FE that positive signs have started to trickle in.

“We now hope that market access will increase for foreign companies and that progress in ties between India and China will help us in future,” he said.

Till now, the going has been extremely tough for Indian IT vendors in China. The last 12 months have been especially so. Chinese customers have not been liberal with budgets and the perception of information security risks and rising costs have also impacted growth. For instance, Infosys, which had entered the China market a decade ago, had posted a net loss of $1.8 million during the last financial year on revenues of $104 million.

According to another top official with a MNC player operating in China there have been some positive changes of late. There is some amount of moderate growth in business, he told FE.

The Chinese economy is still growing at a fast clip with 136 Global 2000 companies opening up to global standards of processes and systems. Also, Chinese subsidiaries of multinational companies have started to provide more work to Indian IT vendors.

The decision to open up call centre services at the Shanghai Trade Zone comes at a time when China is trying to adopt new business models and technologies faster. Big data, cloud, mobile technologies and social networks are finding great traction in China. These are about to be utilised heavily in the country’s Smart City initiatives.

The Chinese government has identified 193 pilot Smart Cities and is pushing them aggressively to run through information technologies more efficiently. According to IDC, about $400 billion will be invested in Smart City initiatives over the next 10 years. According to Infosys, many Chinese companies are embracing business transformation by working with technology partners.

However, local IT service companies gain advantage in capturing the growing IT service market in China through their better relationships, more flexible sales tactics and policy restrictions for foreign IT firms.
 
Learn hindi..... and call tech support ...problem solved :D

That doesn't sound cost-effective. :no:

I donot see any real benefit for Indian IT providers as China and its company works on less billing than Indian counter part......So it will benefit Indian IT company if they hire China people and employ only...I thing this is the motive of China with this kind of move...

That's a good point. Due to the language barrier, they'll have to hire mostly Chinese people to provide these services to the Chinese population.
 
Chinese wall falls for Indian IT service providers - Financial Express

The Chinese government, in a significant move, has informed Indian IT service providers that they can start providing call centre services to Chinese clients. Until now, no foreign company was allowed to provide call centre services for Chinese customers.

To start with, the restriction has only been lifted at the Shanghai Pilot Free Trade Zone. But there are enough indications for IT vendors that the restriction will soon be removed across all trade zones. This will come as a big relief for the $108-billion Indian IT industry, which has been facing stiff headwinds in China.

Foreign companies have always found it difficult to tap into Chinese state-owned enterprises, which account for a large percentage of China’s IT services market.

VR Rangarajan, head of Infosys China, told FE that positive signs have started to trickle in.

“We now hope that market access will increase for foreign companies and that progress in ties between India and China will help us in future,” he said.

Till now, the going has been extremely tough for Indian IT vendors in China. The last 12 months have been especially so. Chinese customers have not been liberal with budgets and the perception of information security risks and rising costs have also impacted growth. For instance, Infosys, which had entered the China market a decade ago, had posted a net loss of $1.8 million during the last financial year on revenues of $104 million.

According to another top official with a MNC player operating in China there have been some positive changes of late. There is some amount of moderate growth in business, he told FE.

The Chinese economy is still growing at a fast clip with 136 Global 2000 companies opening up to global standards of processes and systems. Also, Chinese subsidiaries of multinational companies have started to provide more work to Indian IT vendors.

The decision to open up call centre services at the Shanghai Trade Zone comes at a time when China is trying to adopt new business models and technologies faster. Big data, cloud, mobile technologies and social networks are finding great traction in China. These are about to be utilised heavily in the country’s Smart City initiatives.

The Chinese government has identified 193 pilot Smart Cities and is pushing them aggressively to run through information technologies more efficiently. According to IDC, about $400 billion will be invested in Smart City initiatives over the next 10 years. According to Infosys, many Chinese companies are embracing business transformation by working with technology partners.

However, local IT service companies gain advantage in capturing the growing IT service market in China through their better relationships, more flexible sales tactics and policy restrictions for foreign IT firms.


but i am surprise , it is wrong decision by chines government,
chines must be think about Pakistani IT industries , because in Pakistan they already started teaching chines language in school .....
 
What are you trying to say dude!...I guess you need to learn some english first...not that it is important..but in a public forum, where english is the means of communication, it is important.
Learn how to ready english first then post your comments.
 

Country Latest Posts

Back
Top Bottom