economy - China's IT firms cannot compete globally

Says a recent study, published by consultant firm McKinsey(registration required).

To compete effectively in global outsourcing, China's software industry
must consolidate. The top ten IT-services companies have only about a 20 percent
share of the market, compared with the 45 percent commanded by India's top ten.
Furthermore, China has about 8,000 software-services providers, and almost
three-quarters of them have fewer than 50 employees. No company has emerged from
this crowded pack; indeed, only 5 have more than 2,000 employees. India, on the
other hand, has fewer than 3,000 software-services companies. Of these, at least
15 have more than 2,000 workers, and some—including Infosys Technologies, Tata
Consultancy Services, and Wipro Technologies—have garnered international
recognition and a global clientele.