Scene 1: An expert on new software that a company has developed, is
giving a presentation to a group of techies on how the product enables companies
to become more agile. He talks of the paramount need for companies to remain
competitive by spotting new opportunities and moving in for the ‘kill’
before others do. He also talks of the ability of the new software to cut costs
and remain globally competitive.
Scene2: A new TV commercial by a popular multinational soft drink
manufacturer shows a group of ‘heavyweights’, take on their ‘lightweight’
opponents in a football match. The heavyweights outclass and outmanoeuvre their
lightweight counterparts by their sheer agility.
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Both these scenes remind me of the debate that is raging in India on the ‘threat’
that the Chinese IT industry poses to the Indian IT industry in the globally
competitive IT market. The debate centres on the agility of the Chinese
government to make things happen at a terrific pace. There are several examples
of the quick decisions made by the Chinese.
Among these is the setting up of 100 hi-tech colleges all over China to churn
out highly qualified IT professionals and reducing turnaround time at ports to
help their exporters remain competitive. Another important factor that
contributes to China’s success is the size of its domestic industry due to
which it has remained insulated from the upheavals that occurred around the
world. The lightning quick approval given by the visiting Chinese Premier Zhu
Rongji to Infosys to set up an office in China is being cited as an example for
India to emulate.
It is often argued that the lead the Indian IT industry has managed to gain
over China will be nullified in a few years and unless something is done, and
done quickly. Experts on China speak of the new initiatives that the Chinese
government has taken to encourage its people to learn English. It is therefore
suggested that to maintain the lead that we enjoy over the Chinese, we must be
more agile in fashioning our responses to the challenges thrown up by the
Chinese IT industry. However, the policy initiatives to counter the Chinese
threat will come mainly from the government or will need support from the
government. And since democratic governments are not particularly known for
quick responses, this already seems like a lost cause.
On the other hand, there are others who argue that any country that does not
have a democratic polity will always have an edge over other countries that
follow the democratic system of governance. The fact that single-party
autocratic regimes are always better placed to ‘deliver the goods’ is
considered axiomatic. And therefore, unless there are radical changes in the way
we govern ourselves, our people and our businesses, there is no likelihood of
India ever managing to cope up with the rate of growth of the Chinese economy or
with China’s ability to attract foreign direct investment.
So, what should be done in the face of this very real and threatening
competition from China? One option is do nothing and wait for the events to
overtake us. That is the simplest thing. Not to do anything.
The second option is to be proactive. To do that, we must have a very
authentic account of what exactly is happening in China. As Nasscom chairman
Phiroz Vandrewala said at the Dataquest awards function last month, "We
would need to visit China to get a first hand account of what is happening
there. Only after that is it possible to work out a strategy to counter the
Chinese threat." Of course, a SWOT analysis is essential. And that can be
done only if conjectures and speculations are replaced with hard facts and
authentic information on what is happening in China. What is the ground level
situation there and what are the factors that are leading to this dramatic level
of growth. What are our shortcomings? Work out these isues and we will have our
action-plan.
The author is additional IT secretary, Government of Delhi. He can be
contacted at itdelhi@bol.net.in