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Recently, bilateral and political ties between China and India have not been
so smooth. Though the Chinese authority has its own objections against the
Indian governmentin administrative mattersthe same doesnt exist when it comes
to doing business between the two neighboring nations.
In fact, Sichuan provinces 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 who is part of Chengdu Tianfu Software Park
is touring India, and meeting Indian tech companies. According to Chengdu Tianfu
Software Parks vice president, Victor Johan Jansson, the Chinese government is
offering various incentives to IT firms, including subsidies for space or office
rental, personal income tax, training talents, and professional settlements.
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| Chengdu is an excellent stop
destination for Indian companies to enter the Chinese market
Victor Johan Jansson,
VP, Chengdu Tianfu Software Park |
Chengdu is an excellent stop destination for Indian companies to enter the
Chinese market. Geographically, it is close to India with direct flights to
Bengaluru; 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 informs.
Importantly, a growing number of back office operations are moving from
coastal areas to Chengdu, which are potential customers to Indian outsourcing
providers, Jansson adds.
From IT industrys perspective, this hi-tech zone has the national public
technology platform, which facilitates companies in research & development
(R&D), testing, demo, verification, and trainingall free of cost.
The zone assists companies in obtaining large volume and highly reliable
telecom services, based on development of the company project, Jansson
suggests.
In terms of IT business growth, Jansson points out that Chengdu has a large
talent pool, with over 1,60,000 people working in electronics/IT/software
industry, along with the availability of 1.5 mn technicians and engineers.
With 5,90,000 students on campus, and forty-two universities here, it
supplies local talents to companies; and allows low-cost business operations,
he explains.
In addition, the tech park helps companies to obtain hi-tech and software
enterprise certificates, along with government approvals, and other formalities.
Moreover, financial assistance is available to businesses and companies applying
for CMM certifications, with 70% 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 Network, Alcatel-Lucent, SAP, and Symantec have their base here;
and even Indias Wipro, 3i Infotech, and NIIT are operating here.
In the times of economic downturn, where businesses are going for cost
cutting, the search for low-cost destinations, with cheap tech professionals has
become a top priority for most Indian tech firms.
The economic slowdown 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
slowdown started, more people are talking about Chengdu, whether in China or
abroad, Jansson concludes.
Chengdu is a top rated city, according to Oriental Outlook Weeklys 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.
Pankaj Maru/CMN
maildqindia@cybermedia.co.in
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