China IT Sector Still a Tough Market to Acquire: Infosys
In order to address the $35-billion trade deficit, India has been insisting that China open its IT market more to Indian companies. Chinese officials have maintained that there are no built-in barriers and the Indian companies have to compete in the market.
"There are some unwritten barriers in penetrating... and government projects. However, there is a lot more that can be done before hitting those barriers," Rangarajan said.
Almost all top brands of Indian IT firms are present in China, but they mostly service the multinational companies. "Market entry strategy is about positioning as an alternative to global IT providers, which are well entrenched in Chinese markets," he said.
Infosys China itself has been experimenting with various models with some success.
"We have to build case examples. Records elsewhere do not hold good in China. You have to start step-by-step with required investment and persistent campaign to demonstrate we can do better," he said.
India's over $100 billion software industry is focused on the U.S. as a major chunk of revenue comes from this market. Chinese IT market in comparison is far smaller and profit percentages are not high.
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