Article at a glance:

Can China compete in IT services?

Many of China's companies have proved that they can compete with any business in the region. But a close look at the Chinese IT industry shows that it must overcome significant obstacles before it can pose a threat to India.

The take-away

Fragmentation and a consequent lack of scale will prevent China's IT firms from capturing a larger part of the outsourced-IT-services market until the industry consolidates and learns to manage its talent more effectively.