• Chinese software Baidu (search engine) is in 6th position among top websites of the world.
• Chinese softwares such as QQ (instant messenger), and Xunlei (download manager) are well known today.
• Chinese softwares are of less cost. So, people prefer them.
• Some software professionals are not working for India. They are working for foreign countries. More than 100,000 Indians migrating to the United States each year for better-paid software jobs. This is a big disadvantage to Indian software industry.
• China has skilled man power.
• Chinese government and industry program is shaping tie-ups with colleges abroad and investing millions of dollars in research laboratories and equipment.
In Against:-
• English accent and no.of English speakers are more in India than the China. Softwares are better accepted by all if they are in English version.
• China's offshore software industry is limited to Japan and South Korea due to language barriers.
• At present, India is far ahead than China in IT sector and it is developing too fast to catch it.
• Only six of China's 30 biggest software companies are qualified at level five or four of the capability-maturity model. On the other hand, all of the top 30 Indian software companies have surpassed these benchmarks.
• The top 10 Chinese information technology services companies have only about 20% share of the market compared with 45% garnered by India's top 10.
• Top 10 Indian companies exported more software than Russia and China put together.
• Many Indian companies have already started recruiting from Chinese universities. It's becoming a plus to India.
Conclusion:-
In my view, China is definitely not a threat to Indian software industry as India is far ahead than China in IT sector and the India's technology is developing faster. Anyway, it's good to have healthy competition. Competition helps both countries to develop