In the race between India and China to be a preferred destination for IT outsourcing (ITO), a new report by Alsbridge comes as a breather for the latter. This U.K. based consultancy firm, has identified 10 places in China (See Table) that show tremendous potential for ITO.
These places are already home to some big global IT players like IBM, Microsoft, Accenture, HP, Capgemini, TCS, Satyam and ACS, and are attracting more MNCs with their infrastructure, preferential government policies and large technical talent pool.
The firm has chosen these places based on accessibility, population, education, resources and economic stability of these cities.
Apart from having a large IT professional population, the cities have shown strong economic development. Hangzhou, with a population of 6,400,000, is recommended by the World Bank for having the best investment environment due to many factors, including political stability, consistent tax policies and infrastructure. It also has a strong economy with a per capita GDP at $6,700, not far behind Shanghai’s $7,000.
As the main economic center of China, Guangzhou’s GDP exceeded $76.8 billion in 2006, and was number one among 659 other Chinese cities. And thus this city is also featured in the report as a promising ITO hotspot.
The Chinese government has supported the establishment of hi-tech development zones and software parks in smaller places like Shenzhen, Nanjing, Jinan, Xian and Dalian, to develop them as major outsourcing centers.
|
Top 10 Chinese Cities
for IT Outsourcing
|
| Chengdu |
| Dalian |
| Guangzhou |
| Hangzhou |
| Jinan |
| Nanjing |
| Shenzhen |
| Tianjin |
| Wuhan |
| Xi’an |
| Source: Alsbridge |
