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China's Software Industry and Its Implications for India

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  • Ted Tschang
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    Abstract

    The Chinese software industry is small and underdeveloped, compared with its computer and other information technology (IT) hardware industry and compared with India’s software industry. Yet, current status is not necessarily a good guide to future prospects, as China’s recent history amply demonstrates. An important difference between the Chinese and Indian software sectors is the former’s close links to domestic users, notably industrial and commercial users. This has fostered intensive learning in the area of product development for a large and rapidly growing domestic market. India’s software sector, lacking such a dynamic domestic user sector until very recently, has thrived on exporting software services. Does the underdeveloped domestic user base constitute a long-term liability for India vis-à-vis China? Not necessarily, if Indian firms can play to their own strengths in process control and project management, perhaps forging alliances with Chinese companies strong in ... L’industrie de logiciels de la Chine est modeste et sous-développée, comparée à son industrie des matériels informatiques, et à l’industrie indienne de logiciels. Toutefois le statut actuel n’est pas nécessairement un bon indice pour mesurer les perspectives d’avenir de la Chine, si l’on s’en réfère à son histoire récente. Ce qui différencie la Chine de l’Inde dans le secteur des logiciels est que la première a établi des liens étroits avec les utilisateurs nationaux, notamment les utilisateurs industriels et commerciaux, développant ainsi l’apprentissage intensif en matière de développement de produits à grande échelle pour un marché national déjà important et sans cesse croissant. L’industrie de logiciels de l’Inde, manquant d’un secteur d’utilisateurs aussi dynamique qu’en Chine, s’est développée en exportant ses logiciels. Ce sous-développement du marché national constitue-t-il un handicap à long terme pour l’Inde vis-à-vis de la Chine ? Pas nécessairement, si les entreprises ...

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    File URL: http://dx.doi.org/10.1787/342184862706
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 205.

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    Date of creation: Feb 2003
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    Handle: RePEc:oec:devaaa:205-en

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    Cited by:
    1. N.S. Siddharthan & Stanley Nollen, 2006. "Non-equity Alliances and the Performance of Indian Software Firms," Working Papers id:544, eSocialSciences.
    2. Ramkishen S. Rajan & Sadhana Srivastava, 2010. "Implications Of The Economic Rise Of The PRC For Asean and India: Trade and Foreign Direct Investment," Working Papers id:2680, eSocialSciences.

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