Structural Shifts in the Chinese Software Industry.

This article focuses on structural shifts in the Chinese software industry. China and India account for two-fifths of the world population and are among the few developing countries that have established good track records in exporting high-technology products. As in any economic sector, companies in the software industry need to realign and adapt to major technological and market changes. Social, political, and cultural adaptations are equally important. Such adaptation and realignment are tightly linked to a company's success. The Indian software industry doesn't seem to make efforts to realign and adapt to technology and market changes. One fundamental structural shift is related to stimulating domestic demand and orienting Chinese software firms toward the domestic market. Estimates of China and India's domestic software market sizes vary widely. Government software consumption and recently enacted local procurement laws favor domestic players. An important structural shift in the Chinese software landscape has been the emergence of new and powerful players.