When there is a spillover effect of IT outsourcing from India, which is the country most likely to receive business?
Well, no points for guessing. It has to be China and the high level
Chinese delegation from Suzhou seems to be making no bone about it.
Although Bangalore seems to be the destination for most of the
delegations coming from various Chinese provinces, this particular one
is targeting the Indian IC design companies in Banglaore and other
About an one hour drive from Shanghai, Suzhou, with its 2500 year old
cultural heritage has moved into the hi-tech zone of IC design and
traditional IT outsourcing and set to propel Suzhou Industrial Park ,
a joint venture between the Chinese and Singapore government, on the
global IT map. The quaint city covered with gardens and steeped in
traditions has now overtaken Shanghai in terms of the foreign direct
investment (FDI) which today touches $24.8 billion.
Says Daisy Gao, Deputy Director, Suzhou Industrial Park, “There are
2400 companies in Suzhou – out which US and EU comprise about 50 %
while 18% are from Taiwan. 13% from Japan and the rest from other
countries and we are looking at attracting more software companies from
While all the large companies like Infosys, Tata Consultancy Services
(TCS), Wipro and Satyam have operations in China, it is the medium
sized companies that are the likely target for this Chinese city.
Software development and outsourcing, animation and IC design, high end
R&D as well as RFID are the areas that the 2400 companies in Suzhou
are engaged in, apart from precision mechanicals, bio pharmaceutics and
new generation materials.
Says Sanjeev Joshi, business development manager, global accounts
Suzsoft Co Ltd, US-based IT services provider, “One thing that I have
noticed in the past two years is that the Chinese government is making
an all out effort to move up the value chain in terms of IT and
software. There is a large domestic market out there which every
country is vying for. Now with the government’s active support, China
seems to be the one country that seems to be attracting companies who
are looking at cutting costs and taking on the local market.”
According to Poornima Shenoy, who heads the Indian Semiconductor
Association ( ISA) the opportunities in China are enormous – especially
in manufacturing and IC design. “There was a time when we used to talk
about China, it was always India versus China –but now the world is
realizing that it is not India or China but India and China.”
And, when one talks about IC design and manufacture, it is the
intellectual property (IP) protection issue that comes up and the
question that invariably props up is whether the government has taken
any steps in this direction. “Our government along with the customs
department has set up a special organization to protect IP and look
into IP violation,” adds Feng Dang from Suzhou Industrial Park
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