The differences between the Chinese and the Indian education system for Engineers could explain the past…and give a hint for the future

Indians are taught software and program management, they learn how to work in groups.
Chinese are taught hardware and in professional skills (aerospace, accounting, …), they work more on their own.

This difference could explain why India has specialized in IT and saw huge Indian companies emerge on the world scene: their skills fit the program design needs, program management and software development.
The Chinese are better in everything to do with the machines. They excel in computer manufacturing, Telco equipment. They don’t have national champions in IT services where teamwork and knowledge of software are more necessary.

For BPO, China could have an edge: the most important skills for BPO are “sectorial” skills (a good knowledge of the processes in a given sector). International BPO companies could find easier to train a Chinese process expert to work in BPO, than to teach a sectorial process to an Indian professional with soft skills.

By the way, on that matter, Russia is very close to China… watch out for China and Russia in some high-end BPO markets!