Research On The Comparisons Of The Competitiveness Of Software Outsourcing Industry Between China And India

As the core and soul of the IT, the software industry which has penetrated into the national economic and social aspects of production, became the leading industry of the strategic decision national competitiveness in the 21st century. In order to optimize allocation of resources, control the personnel costs, chase the profit maximization in the global, the companies of the developed countries outsourced some non-core software to the countries that the human resource costs are relatively cheap. It not only promoted the rapid development of global software outsourcing industry, but also provided a rare opportunity for developing countries. India seized this opportunity to become an international software outsourcing center. Despite China and India have the same starting step in the software industry, even China was better. China still has a big disparity in outsourcing industry compared with India now. Referring the India's experience, the author will compare and study the two countries in software outsourcing industry. Under this situation, it has a very important theoretical and practical significance to choosing a suitable path of development in this industry for our country.In this paper, the analysis frame work is founded by author based on Michael E. Porter's Diamond Model, which contains factor conditions, demand conditions, related and supporting industries, context for firm strategy and rivalry, government and opportunities. It is used to study the new connotation of each factor in soft ware outsourcing industry, compare the competitiveness, analyze influencing factors of the competitiveness. The analysis reveals that China's software outsourcing industry has many shortcomings compared to India, such as the shortage of software human resources, the unreasonable structure of human resources, laggard higher education about computer, Small sizes of firms, weak developed ability, scarce protection of intellectual property rights. However, China also has its own advantages in software outsourcing industry, for instance, larger domestic market, more familiar with Japan's cultures, etc.