Microsoft Sino-Indian Deal Sounds Warning Bell

European firms need to wake up to the "warning bell" being sounded by the globalisation of the software and services industries, industry experts have warned. Analyst firm Gartner said that Microsoft's recent creation of a joint venture with Indian service provider Tata Consultancy Services and Chinese government interests will create a major new China-based global sourcing provider.

Gartner Research vice president Partha Iyengar said: "China's decision to partner with a leading Indian service provider, and the Indian company's willingness to participate, show that both nations see the potential for mutual benefit to their software industries. The international alliance was sealed at the end of June when China's Sino-India Cooperative Office announced that Chinese companies will partner with Microsoft and Tata to establish a software services company to compete in Chinese and global markets.

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