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 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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