The value of software and services exported from China is forecast to grow at a compound annual growth rate of nearly 38% through 2011, China Daily
reported, citing industry estimates. The total value of software and services exported from China was an estimated $1.8 billion in 2006, paltry compared with India's estimated $41 billion export revenue in the year to March 2008. India’s export revenues from the sector are expected to jump to US$60 billion by March 2010. Timothy Bush, an analyst at Merrill Lynch, said Chinese firms had to move up the value chain if they hoped to compete with Indian firms such as Tata Consultancy and Infosys, which are fast chasing consulting revenue. Top players among China's up to 3,000 firms include VanceInfo Technologies, Chinasoft International, Sinocom Software and Shenyang Neusoft Co Ltd. However, Chinese IT outsourcing firms have one advantage over their export-orientated Indian rivals; they mainly serve the local arms of domestic and foreign companies, which could shield them from the worst impact of a US recession.