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Why China will Succeed!
The Chinese obsession with scale and quality could make it the next global leader ahead of India
Ganesh Natarajan
Thursday, May 21, 2009
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A tale of two couples paints a perfect picture of success of the Indian middle class on the Chinese landscape. Lakshman and Hetal Hemnani is one of the couples, who started off life by managing a small Aptech center in Pune. Now the couple is running a successful chain of Indian restaurantsGangesin the Chinese capitalBeijing. The food chain provides quality Indian cuisines and services that would put many fine restaurants in our own country to shame. While on the other hand, two IIM graduatesAshok Sethi and Renu Khuranaleft their thriving careers in India to explore the land of Confucius six years ago, and have now become Chinese in their occupation as well as their thought process. Ashok runs a thriving market research business, while Renu provides consultancy on education and process quality to multinational and local firms.

What is common to this enterprising quartet, and indeed to many more young Indian families who have chosen China as their home is the respect they have imbued for Chinese work ethics and way of life. During the umpteen number of visits to this exciting country in the last year, every time I was more convinced that if there is one country that can take on the mantle of global leadership from America, it is not India but China. Unless, of course, if we all collectively decide to do something about it!

The two significant characteristics that have built my conviction is the Chinese obsession with scale and quality, their ability to learn quickly and surpass the standards set by their own teachers. An enchanting audio-visual in the small city of Suzhou demonstrates the transformation of this small outlying village of Shanghai into a successful pilot city, demonstrating Chinese outsourcing capability at its best. A Communist party secretary and mayor committed to growing $1 bn plus outsourcing business in the country, started the first outsourcing college for training young Chinese citizens. The institute will train the Chinese youth on the finer aspects of domestic and global outsourcing that could attract the best in the world to the city. And if just the Yangtze river delta and its high growth cities of Shanghai, Suzhou, and Nanjing can achieve so much in so little time, then Beijing and Nanjing in the north and Shenzhen Guangzhou and Fushan in the south will be setting an equally scorching pace.

For a long time, we in India have seen the emergence of Dalian as an isolated example of success through its focus on Japan and Korea. But with 70 mn ambitious members in the Communist party engaged in fierce competition with each other to attract foreign investment, Chinese ecosystem is fast closing the gaps in the post recession years. A decade ago, few of us could have realized how successful the Aptech Beida Jadebird would become the dominant computer trainer in the country. With the widespread English language training, and educators from myriad Australian and British Universities to the numero uno Harvard Business School bringing the best of skills, China will soon discover the secret sauce to develop the talent pool that has taken India to the top of the totem pole in global IT and business services outsourcing.

Finally, one aspect about China that has not changed in this last decade is the acute sense of salesmanship, Strolling in the streets of the bustling yu yu aan markets with a young Indian friend, we were amused when a merchant not only convinced her to buy a fake Rolex watch for Rs 500, but also offered to give her the whole case of watches, if she would marry him and stay on in China. So much for Hindi-Chini bhai bhai!

Ganesh Natarajan
The author is Vice Chairman & MD of Zensar Technologies. He can be reached at maildqindia@cybermedia.co.in

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