The Comparative Research On The Development Of The Software Industry In China And India

China and India both lay great emphasis on developing the software industry and have similar starting time, but there is great difference in the development of the software industry between the two countries. Under the background, this paper gives comparative analysis on the factors affecting the development of the software industry in China and India, in order to give some relevant suggestions for the development of Chinese software industry. This paper provides some theoretic and realistic help for the Chinese software industry.Based on Michael Porter's Theory of the Competitive Advantage of Nations, this paper mainly compares the software industry of the two countries from six aspects, the production factors demand factors relative and supplementary industry the strategy structure and the ways of competition of enterprises the function of the government and opportunity. At last, we find the difference between the software industry in the two countries are as follows. Firstly, the pattern of cultivating the talents of software industry in China is not fit for the needs of markets and needs reform through learning successful lessons from Indian pattern. Secondly, China not only doesn't make full use of the big domestic software and service markets, but also the outsourcing markets like India. Thirdly, there are some software gardens in China, but the extent of their-receiving the support and help from the government and the infrastructure of construction in the software gardens are secondary to those in Indian software gardens. Fourthly, on one side, the scale of Chinese software enterprises is much smaller than that of Indian enterprises. On the other side, the quality management of Chinese enterprises also needs much improvement. Fifthly, the supporting policies carried out by the Indian government play key role on the development of Indian software industry. While Chinese software industry policies are drafted later and lack the relevant detailed rules. Finally, from the initial stage to the middle of the 90s, the Indian country grasped three historic opportunities such as the Y2K problem the continuous increase of American economy and the emergence of EUR, which promote the continuous and fast increase of the Indian software industry. While in the 21~st century, there will be more opportunities for the development of Chinese software industry. If China grasps the following opportunities such as the outsourcing of software service the demand of domestic software enterprises and striding across the stage of the world, it will win some share in the international software market.This paper puts forward the relevant suggestions for the development of Chinese software industry based on the difference between the two countries' software industry. Firstly, the development and cultivation of the human resource in the software industry should be improved greatly. Secondly, the international markets should be exploited so as to enhance the international competitiveness of the software industry. Thirdly, the software enterprises should enlarge the scale and enhance the quality management. Finally, China should implement the policies of the software industry further.