India and China are clearly the new stars in the global economy. The two nations ? home to nearly two-fifths of humanity ? are making a splash in the world with their technological ambition. Both are being watched with awe and fear, as people all over the world seem eager to know more about China and India. Will the economic ascent of the two relatively poor nations disrupt workforces, industries, companies and markets?
The debate unleashed by Thomas Friedman?s bestseller The World is Flat is no more about the world becoming a flatter place in the future. But the focus is now moving to the global power balance shifting to the East. Even Infosys Technologies co-chairman of the board of directors, who inspired Friedman with ?the playing field is being levelled? agrees all those in business need a China and an India strategy. ?By choice or by necessity, more and more CEOs see India and China appearing in their business plans,? he says.
In sharp contrast to the need to monitor the two growth markets and gauge opportunities and threats, the quality of information, research and advice on how to make key decisions related to China and India is uneven. Gartner analysts James M Popkins and Partha Iyengar seek to uncover these far-reaching and influential trends in IT and the East.
Clearly inspired by the questions posed by strategists and decision-makers in leading companies during their extensive travel to China, India and ?virtually elsewhere in the world where the impact of these two rising economic giants is felt?, the duo digs out game ? changing developments for global players in the IT industry.
Given the economic and social imperatives of development, insiders doubt if India and China will provide breakthrough technology solutions based on R&D in the near to medium term. Popkins and Iyengar have refrained from over-hyping the R&D units lining Bangalore and Gurgaon, but are convinced that these nations are doing much more than throwing more brains at technical problems at a fraction of the cost. This seems to be in line with a recent Economist report by Simon Cox, who argues that Indian and Chinese firms have a comparative advantage in finding new uses for existing technologies and combining them in novel ways. This kind of ?architectural innovation? may be scientifically modest, but it can nonetheless be commercially significant and this was, after all, how Japan?s electronics firms came to dominate the market.
The deeply researched book also speculates on what lies ahead for each country and uses the Chindia framework to explain how the two countries could reassert their combined influence on the international stage. It offers checkpoints with a set of probable scenarios to guide strategic planning at the enterprise level. Colourful anecdotes and vivid accounts enliven the debate, but the book at times suffers from giving out extensive research.
A good read for corporate decision-makers and strategists to assess and address the implications in the fast-rising economies of India and China.
When Partha walked into a four-story clothing store during a 2006 trip to Chongquing?s popular Chaotianmen shopping district, he was greeted enthusiastically by shopkeepers. ?Indu! Indu!? (Chinese word for India) they exclaimed when Partha confirmed their hunch that he was an Indian national. ?Yes, software, software,? they added in English, smiling. ?Very good!? When Partha stood at the Great Wall outside Beijing a few days later, he encountered many Chinese eager to have their photographs taken with him. India?s new reputation for world-class IT services has conferred a kind of exotic star quality on Indian IT professionals in the eyes of some Chinese.
This certainly was not the case a few years ago. In India, you can find a similar affinity for China and the China story. There is a mainstream awareness there of China?s remarkable economic progress, particularly its modern cities, highways and other infrastructure ? all of which are sorely lacking in India. It is as if the two peoples are rediscovering each other after a hiatus of almost two thousand years.