Indian IT firms like Genpact, TCS find it tough to scale the China wall
MUMBAI: Indian IT has conquered continents thousands of miles away, but continues to struggle in China — where changes in government and the inability to adapt to a centralised planning structure have lowered the industry’s ability to compete in the market.
Chinese corporations — largely state-run enterprises — are proving a hard nut to crack and even the frontrunners in the race are pulling back. Genpact, which had the strongest focus on the Middle Kingdom, has cut back the number of sales people targeting the Chinese market by 70%, two sources with knowledge of the matter told ET.
“Chinese firms are much closed about the concept of outsourcing. Unlike the multinational outsourcers, they are still building a brand in China. They are finding it really hard going. Genpact is paring down its sales team, refocusing them to bring in more work from Japan into China, rather than look at the Chinese firms,” an outsourcing advisory consultant based in Shanghai told ET. He declined to be named because he is not authorised to discuss specific company trends.