Indian Outsourcing Companies Being Wooed to Set Shop in China

Posted on May 27, 2010

China is a country with great cultural appeal and social concord. It has emerged as one of the most attractive and preferential business locations, largely because of the slowly increasing English-speaking population in the country.

Advantage China

Taking advantage of China’s low cost products and services, an increasing number of Indian outsourcing companies are directly investing in China. Many Indian IT giants such as Wipro have already expanded their business base in China and there is likelihood for more and more companies to follow suit. Since last year (2009), there has been a considerable increase in Indian companies entering China. This reveals the rising interest of Indian companies in doing business in China.

With investments pouring in from the major global players, China has become a booming market. Because of the country’s excellent infrastructure and an overall business-friendly environment, several Indian companies are eying China as to expand their outsourcing business. China is also becoming an eye-catching market for global biotech companies, with minimal set-up costs, a regular flow of low-cost professionals and a stress-free regulatory condition.

Moving to Chengdu?

Chengdu, in the Sichuan province of southwest China, is drawing the attention of Indian companies to set up software development and outsourcing delivery centers. “Chengdu is an excellent gateway to China for Indian companies with its huge talent base, low operating cost, government support and presence of large multinational IT and outsourcing firms,” said Ge Honglin, Chengdu’s Mayor.

International companies such as IBM, Motorola, HP, Microsoft, Nokia and Canon have set up centers in Chengdu.

Enormous Business Potential

China, with its vast talent pool; cheap operating costs, favorable business conditions and presence of big multinationals, has become a profitable destination for most Indian firms. It is a perfect match for businesses looking for international markets to establish development centers and manufacturing hubs. Also, China’s speedy economic progress has created a potential market for professional services and much more. Indian firms are very optimistic about engaging in a business partnership with China.

It will be interesting to see if IT companies in India follow their foreign counterparts to set shop in China.

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