China wooing Indian IT companies

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China wooing Indian IT companies

China's Chengdu Tianfu Software Park helps companies by supplying local talents and resources that enable tech companies to run low-cost operations here

Pankaj Maru

Friday, October 23, 2009

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MUMBAI, INDIA: Recently, bilateral and political ties between China and India have not been so smooth and calm. Though the Chinese authority has its own objections against the Indian government in administrative matters, the same doesn't exist when it comes to doing business between the two neighboring nations.

In fact, Sichuan province's capital city Chengdu, where Chengdu Tianfu Software Park is based in northwestern region of China, has opened doors for the Indian IT industry and is wooing Indian companies to set up bases there.

Presently, a Chinese delegation, part of Chengdu Tianfu Software Park, is touring India and meeting Indian tech companies. According to Chengdu Tianfu Software Park's vice president Victor Johan Jansson, the Chinese government is offering various incentives to IT firms including subsidies for space/office rental, personal income tax, training talents and professional settlements.

"Chengdu is an excellent destination for Indian companies to enter the Chinese market. Geographically, it is near India with direct flights to Bangalore and is part of a fast growing economic region which offers ample business opportunities with less competition compared to other cities such as Shanghai and Beijing," Jansson informed CyberMedia News.

"Importantly, a growing number of back-office operations are moving from coastal areas to Chengdu, which are potential customers to Indian outsourcing providers," Jansson added.

From IT industry's perspective, this hi-tech zone has the National Public Technology Platform which facilitates companies in research & development (R&D), testing, demo, verification and training - all free of cost.

"The zone assists companies in obtaining large-volume and high reliability telecom services based on the development of the company project," Jansson suggested.

In terms of IT business growth, Jansson pointed that Chengdu has a large talent pool with over 160,000 people working in electronics/IT/software industry along with availability of 1.5 million technicians and engineers.

"With 590,000 students on campus and 42 universities here, it supplies local talents to companies and allows low-cost business operations," he explained.

In addition, the tech park helps companies obtain hi-tech and software enterprise certificates, along with government approvals and other formalities. Moreover, financial assistant is available to businesses and companies applying for CMM certifications with 70 per cent subsidy on government fees.

With various facilities and government incentives, Chengdu is attracting global companies to set up operations here. Already top IT firms including IBM, Nokia Siemens, Alcatel Lucent, SAP, and Symantec have their base here and even India's Wipro, 3i Infotech and NIIT are operating here.

In time of economy downturn, where businesses are going all out for cost-cutting, the search for low cost destinations with cheap tech professionals has become the top priority for most Indian tech firms.

"The economic slow-down has had a positive impact on the local economy; with companies located in coastal areas (Shanghai, Beijing, Shenzhen, etc) moving their back-office functions to Chengdu to enjoy cost savings. Since the economic slow-down started, more people are talking about Chengdu, whether in China or abroad," Jansson concluded.

Chengdu is top rated city, according to Oriental Outlook Weekly's 2009 evaluation of Chinese free market cities for essential expatriate business expectations such as cultural appeal, social harmony, access to quality resources and ease of business transaction.

©CyberMedia News

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Read Comments

Sandeep Thakur said on 11/2/2009 4:20:34 PM:
To add to aboves Comments... Similar to India, Why Not China itself can raise the IT market by revolutionising the technology in their own country, why not government give the IT projects to their own companies. Also, why Indian companies should setup the IT parks/companies there? Are we getting any IT projects from their governments which really have some worth of earning or working?

to Sandeep Thakur

Sharmee said on 10/25/2009 12:38:52 PM:
Quite insightful

to Sharmee

Pravin Nagda said on 10/24/2009 11:52:54 PM:
Is it the new way tack ticks adopted by Chinese government since they are lagging behind in IT. So by providing facilities to Indian IT companies, the Chinese authority right to move up the ladder in the global IT industry?

to Pravin Nagda

Jigna Joisher said on 10/24/2009 5:13:21 PM:
Interesting to know about upcoming region in China - Chengdu

to Jigna Joisher

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