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Will Blockchain Help China Catch-up To India In The IT Market?

by Rajesh Kandaswamy  |  June 15, 2017  |  2 Comments

In enterprise technology outsourcing market, India has been the dominant story in the last two decades. This has led to a flourishing IT services industry and a much smaller one in software. China plays a much larger role in manufacturing and is not nearly as strong in IT services and software. But in blockchain technologies, we witness more activity by Chinese companies. While the domination of bitcoin miners based in China is well known, they are not the only story. Many Chinese enterprises, start-ups and government agencies are quite active. Indian IT industry is dominated by the services providers. Many of them do experiment and invest in blockchain, but mostly to deliver IT services. Investment in deep technology is limited and local activity is of a lesser scale as well.

blockchain china india

Blockchain technologies are very nascent and the pioneering teams canown valuable IP and skills that market will need over time and a chunk of blockchain IP and skills can eventually rest with China based technology companies. Further, the high level of activity in China does not go unnoticed by enterprises outside. As enterprise worldwide scour for talent and technologies, China could appear more attractive compared to other destinations. If this occurs in financial services where interest in blockchain is high, that could be a big problem for Indian IT companies since many derive a large portion of revenue from the western financial services industry. At the same time, blockchain is but one technology that enterprises are interested in when they choose partners from outside. Besides, Indian companies have established deep relationships with western enterprises that has served them well for any emerging technology. But, growth of blockchain does create a new wrinkle in this market that bears watching. What do you think? Will China be able to ride the blockchain wave to grow its IT business in the western world? Or, will the tried and tested Indian IT outsourcing model continue to sail forward smoothly? What do you think are the other possibilities?

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Category: blockchain  

Tags: blockchain  

Rajesh Kandaswamy
Research Director
1 years at Gartner
20 years IT Industry

Rajesh Kandaswamy covers the banking industry for technology and service providers. His focus areas within banking include retail banking, credit cards, payments, mortgage, consumer and commercial lending, risk management, and technology finance. His primary technology areas are mobile banking, mobile and cloud payments, channel convergence, digital strategy, big data analytics, core banking, program governance, and outsourcing. Read Full Bio

Thoughts on Will Blockchain Help China Catch-up To India In The IT Market?

  1. Good analogy. However, blockchain being a foundational technology a deeper understanding about the domain is very essential which indian tech companies have by servicing the western customers over a decade. Technology efforts required to build blockchain applications can be minimal by adoption of a rapid application builder like the one (KrypC) that we have. My sense is that Indian tech companies will continue to lead as they have started amking investments in blockchain domain. Not to discount a possibility of new set of companies emerging in blockchain domain …. like musigma emerged as an unicorn in analytics domain.

  2. sasi kumar says:

    I Agree with ravi’s statement, May be it’s possible through blockchain

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