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des this there are no language issues as many Chinese software professionals know japanese artJapanese language. The Chinese Government is now more focused on developing IT industry and has declared 21 regions in China as tax-free up to 2014 to boost its offshore IT industry.  The best way forward for the Indian software japanese artoutsourcing industry would be to tap both these markets by setting up offshore development centers in China. Wipro already operates a global IT delivery center in China. The other Indian companies should also follow the suit and train japanese arttheir workers in Japanese and Chinese languages. The setting up Indian ODCs in China will be like killing two birds with one stone. The Indian IT companies through their Chinese ODC can penetrate the local market easily and at same time japanese arttap the Japanese market.  The Indian software outsourcing industry should show greater flexibility to successfully tap both Chinese and Japanese market, which it has been finding difficult to crack, so far. It simply cannot ignore these two economies because they offer bright opportunities in the coming years. The software development companies should act quickly before it becomes too late. The emerging economies like Vietnam and Thailand in near future will certainly bite deeper into japanese artthe software outsourcing pie and hence it right time now for the Indian software outsourcing industry to make inroads into China and Japan. This is the right time when the Indian IT outsourcing industry starts implementing a more friendly IT policy to generate more business revenues. 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