Indian and Chinese IT Cooperation

How India and China intend to work together to carve up offshore IT and BPO business as well as encourage bilateral cooperation.

Indian IT and business process outsourcing BPO- is strongly established, with India, Inc. having become IT/BPO s preferred offshore destination. But, as we ve also shown, there are structural limits to India s growth in this sector. Meanwhile, China is emerging as an IT/BPO player, and more generally has committed to developing its own technological expertise. China and India represent two of the fastest-growing economies in the world, and their e-business ambitions are increasingly intersecting, as we saw in the partnership between Tata, the Sino-India Cooperative Office, and Microsoft. Now India and China are becoming even closer in the technology world, with Chinese premier Wen Jiabao having recently visited IT service company Tata and said that, I strongly believe if we join hands together, we will certainly be able to set a new trail in the IT business world. The importance of this relationship shouldn t be underestimated, primarily because it represents a major break with the Sino-Indian tensions of the past several decades. India and China have had border disputes and a regional rivalry that has seen China pony up weapons and other expertise to Pakistan, India s archenemy. Now, though, China and India have found common ground in business opportunity. AMR Research analyst Qin Deng notes that the trade between India and China went up to $13.6 billion in 2004, up from $3 billion at the beginning of the decade. The IT industry was already playing an important role in the increase in trade between the two countries, and will continue to do so, potentially growing to a market worth $30B as part of the partnering countries five-year plan, Deng explains. Source and full article: www.line56.coma>