IT Frim in China (1)

8/3/2019 IT Frim in China (1)

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MEDI-CAPS INSTITUDE OFTECHNOLOGY & MANAGEMENT



INTRODUCTION:-

In the present scenario, IT companies are theleading companies in all over the world. The ITindustries are one of the profitable once in theglobally with the contribution of nearly a trillion

dollars every year. And this companies are helpingto collect to taxes almost $ 700 billon. China is anindustry leader in the Asian market due to itsgrowing economy and favorable polices whichaccount for expansion plan of IT industry.

Indian IT firm i.e. NIIT, Wipro, & Aptechare viewed as part of strategy to expand their

revenue base.



NIIT In IndiaIt was started its operation in china in 1997.It is first Indian IT firm in china.It started wholly owned foreign

entity(WORE) with the permission of Chinese government so as to provide a largeno. of well trained world class IT professionalso.It works in partnership with local companies,leading universities & software technologiesthe needs of IT enterprises in china.



NIIT has tied-up with over 10 leadinguniversities of china and hence provideprestigious placement for its students in theorganization like Fujitsu, IBM, Shanghai

Stock exchange, China Mobiles, Bank of shanghai and pudong software park.It has 183 co-operative education and training

sites at 25 provinces & cities in china.



WIPRO In China

It got a license to do business in April 2004in china.

Wipro’s china subsidiary focused on global

customers.It has set up a subsidiary & developmentcenters in shanghai and followed by second

phase i.e. setting up of an offshoredevelopment center.



Wipro deployed 35-40 Chinese speaking workerfrom Japan & few Chinese workers to meet thedemands & needs at domestic market as well as Japanese clients as Japanese people have made huginvestment in china.Problem faced by Wipro were IPR violations &higher salaries to supervisors & project managersas compare to India.



Aptech In China

50-50 % joint venture jade bird which is aChinese company.Chinese student prefer to study in Beijinguniversity as it is precious tag for Chinesestudent as it has a stake in jade bird.In past five years, Aptech has set up over 200training schools in 57 different Chinesecities.



Aptech head 19% of china's training market.The business of Wipro growing close to 20%annually with total billing at $40 million. Aptech is first IT training company toachieve the 150 quality certification in china.



“indian companies in china do not register as

much growth as vice versa”. Discuss. Indian companies in china are facing problems like :1. Violation of intellectual property rights (IPR)2. Influence of Chinese Communist Party (CCP) over

business3. English is not widespread in china4. Lack of strong banking and legal infrastructure in

china5. Chinese companies usually have their own IT

departments and domestic outsourcing in china andhence question arises about the brand building

6. Chinese companies are still used to traditional globalbrands



Chinese companies in india :

Strong banking and legal infrastructure in india is a majoradvantage for the chinese companies in indiaNo language barrier in india as people speak and understandenglish well

IT firms in india are restricted to debugging ,testing andinstallation and hence chinese IT companies have scope inindiaChinese companies tweak their strategies by overthrowing thelow-price equation and leveraging their technological edge inmanufacturing to command premium pricing"The pricing advantage of Chinese players has beenneutralised by the fact that all the global majors like Nokia,Motorola, Siemens have set up a manufacturing facility in the

country



Que.2 - Did the Indian companies adopted a wrong

strategy in china?

Ans- No, the Indian company adopted right strategy in china because of the following reasons:

1. NIIT worked in partnership with local companies,leading universities in software technology firm tobuild the a large IT manpower pool by enhancingthe knowledge of individuals and organization.

2. NIIT offered different segment using differentmodes of training.



3. NIIT has tied up with 10 leading universities of

china for providing well-trained & world class ITprofessional by providing training in the campus. 4. Wipro deployed Chinese speaking Japan workers

as well as Chinese workers to cater the needs of domestic market of China and Japanese client whohave made huge Investment in China.

5. Aptech had 50-50 joint venture with a chine's

company (Jade bird).6. As Beijing university has stake in jade bird and itstag is precious for most Chinese student ,hence itseeks IT education and embraces them totally.



Ans - The main reasons NIIT success in Chinese ITmarket:

1. NIIT have a wholly owned foreign entity (WOFE) which is permitted by Chinese market.

2. It is an first Indian company to set up professionaleducation centers anywhere in China.

3. NIIT having partnership with local companies,leading universities and software technology part.4. Tied up with 10 leading universities of China.

Que.3 - NIIT’s Chinese arm is reported to have beendoing very well. What are the reasons behind itssuccess?



4. Tied up with 10 leading universities of China. 5. Currently it has 183 co-operative education

and training sites at 25 provinces and cities anchina.

6. NIIT has bugged five Chinese awardsincluding the one for most influential ITtraining brand in China.

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IT Frim in China (1)