In order to cash in on the growing Chinese software market, India launched the second IT corridor in China on Sunday. The market remained elusive despite the presence of some of the top Indian technology firms. The Digital Collaborative Opportunities Plaza will provide market access to India IT firms in the Chinese market.
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Indian service providers and Chinese customers signed agreements worth $6 million at the launch of the corridor by China’s Guiyang Municipal government and NASSCOM. The pilot projects launched on the platform will be executed in the coming year. The first platform in the Chinese port city of Dalian was established in December 2017, which was India’s first IT hub in China. India’s multi nationals have a strong presence in China and this corridor is expected to provide a getaway for the small and medium sized IT companies.
The Dalian IT corridor, the first one in China focuses on Internet of Things and the second corridor will focus on Big Data. It aims to create an online and offline presence in order to promote a co-create culture between the two countries in the space of Big Data.
Zeta-V an Indian company will establish an Artificial Intelligence enabled platform in order to bring together the IT requirements of the companies in China and the solutions which Indian companies have to offer. It will be the merging of the requirements of Chinese companies with the capabilities of Indian IT service providers. These initiatives can give a huge impetus to cooperation between India and China in the IT sector.
The Chinese IT market was valued at more than $493 billion in 2013 and for India to get access to the IT market will help address the trade deficit that is spread over $51 billion. Chinese IT market has grown substantially since then. These two corridors could be a big opening for India IT firms who have been demanding China to provide access to their market for several years.
Indian IT companies have presence in more than 70 countries across the world that generates employment for more than 12 million people globally. Indian companies are present in 10 cities in China with a work force of 25,000 employees. However, the potential is huge and there is requirement of more work and efforts.
Currently NASSCOM is in touch with four other provinces including Wuhan in order to work out new corridors that can be set up based on local needs. The negotiations with Chinese firms to sign up with big Indian IT firms are also on.