India Wants To Tap Into Chinese IT Market; Launches 2nd IT Corridor In China!

The lucrative and massive Chinese IT market is now firmly placed in the radar of India’s IT biggies.

Since US Govt. has made it tough for Indian IT companies to run their businesses in their country, it seems that India wants a big piece of the Chinese IT market, and this is the reason that a 2nd IT corridor has been launched in China.

Now, the only question which arises: Will the Indian IT firms be able to crack Chinese market?

2nd IT Corridor Is Now Live In China!

The National Association of Software and Services Companies (NASSCOM) has again taken the initiative and has officially launched India’s 2nd IT Corridor in China.

It is expected that this 2nd IT Corridor will help Indian IT firms to establish their presence in the tough Chinese market, and grab some big-ticket projects.

Termed as Digital Collaborative Opportunities Plaza (SIDCOP), this second IT corridor has been established at Guiyang Municipality in China.

On opening day itself, agreements worth $6 million or RMB 36 million was signed between Chinese clients and Indian IT firms. NASSCOM has collaborated with the Guiyang Municipal government for this new initiative.

As per Gagan Sabharwal, Senior Director, Global Trade Development NASSCOM, the Guiyang IT Corridor will mainly focus on Big Data related projects.

MoUs signed on the launch day would be executed by next year.

India’s ambassador to China Gautam Bambawale was also present at the launch and said that this new corridor will help to bridge the gap between India and China and forge new relationships.

He said,

“In this way, we will be marrying the requirements of Chinese companies with the capabilities of Indian IT service providers. We visualise that these initiatives will give a big impetus to cooperation between India and China in the IT-enabled services sector.”

Chinese IT Worth $500 Bn Market Is The Target!

Last December, NASSCOM had launched the Dalian IT Corridor in China, which was the first such IT Corridor established by India in China.

While Guiyang IT Corridor will be focussing on Big Data, the first IT corridor at Dalian is focussing on IoT related projects.

And Artificial Intelligence will be used as the catalyst to create a common platform.

For instance, an Indian IT company named ‘Zeta-V’ will create an AI-based platform which will collect IT requirements of Chinese companies, and present them before Indian IT companies so that the projects can be picked, and completed seamlessly.

Prime Minister Narendra Modi and Chinese President Xi Jinping had recently met during an informal summit, and the establishment of a new IT corridor is seen as a direct result of the same.

Gautam said,

“India-China relations are progressing well, particularly after the Informal Summit”.

Chinese IT industry is worth $493 billion (as of 2013 data), and if India is now forming bridges and corridors to get an entry into this lucrative market, then it is not a bad decision.

We will keep you updated, as we receive more information.