| IT software and services is a fledgling sector of the Chinese economy. Estimated at USD 12.3 billion1, the sector's revenue aggregate accounted for just about 0.5 per cent of the country's gross domestic product in 2006. |
| Yet, over the past few years this sector has attracted growing levels of attention, from the local authorities (Chinese government) as well as the global business community. |
| Much of this heightened attention is attributed to India's meteoric rise as a destination for outsourcing IT software and services and the apparent similarities between the two nations leading to the notion that China can replicate this success. |
| China clearly has the potential to develop a large IT software and services base. Underlying this is substantial domestic market potential, a sizeable educated workforce and strong government emphasis on developing the sector. However, the IT software and services industry in China is still in its early phases of evolution. Frequent comparisons with India and commentary positioning China as a substitute destination are quite misplaced. |
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