ID :
11109
Mon, 06/30/2008 - 10:25
Auther :
Shortlink :
http://m.oananews.org//node/11109
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Chinese city Dalian aims to do a Bangalore
Ranvijay S. Yadav
Dalian (China), June 30 (PTI) - Inspired by Bangalore,
India's 'Silicon Valley', this city in north-east China has
set for itself an ambitious target of becoming world's top
Information Technology (IT) centre within a decade.
A scenic coastal city set among green hills, Dalian has
already attracted a large number of international and local
corporations to set up regional bases for Information
Technology Outsourcing (ITO) and Business Process Outsourcing
(BPO) services.
Among these are 34 Fortune 500 companies. "By 2017 or
2018 we hope to be a peer with Bangalore and Silicon Valley
(of America)," said Dalian Mayor Xia Deren.
"We are striving to be the No 1 software centre in both
China and the world," Xia told reporters ahead of the China
International Software and Information Services Fair (CISIS)
2008, which ended on June 21.
The annual event saw participation from some top-notch
companies like SAP, Neusoft, Ericsson and Microsoft.
Software export from Karnataka (mainly Bangalore) was
worth Rs 54,000 crore (USD 12.6 bn) in 2007-08, up from Rs
48,600 crore (USD 11.3 bn) in the previous year.
As compared, in 2007, the software export exceeded USD
700 million in Dalian, which had a workforce of 60,000 people
and was home to nearly 700 IT/BPO enterprises.
As many as 50 multinationals among Global 500 have set up
software R&D and service institutions here, a feat not
achieved by any other Chinese city.
It holds a unique position as the only software
outsourcing international model city in China, a country where
according to research agency IDC, IT market is estimated to
cross over USD 150 billion in 2008 and USD 200 billion in
2010.
Dalian is within an hour of flying from Beijing, South
Korea and three hours from Japan. It ranked fifth as
Asia-Pacific's top IT outsourcing destination in a survey by
IDC Corp in July last year, coming behind Bangalore, Manila,
Delhi and Mumbai.
In view of the city's booming market, it is predicted to
be the top IT service centre in North-east China, dominating
about 40 per cent of the whole output in the region.
Further pushing the case is 'Dalian Tiandi Software Hub',
a mega IT park being developed by leading Chinese property
developer Sui On Land Ltd and its two other sister entities,
Yida Group and Shui On Construction and Materials.
The hub, spread over an area of 26.5 sq km, would see an
investment of USD 2.5 billion and the first office building is
expected to open in December 2009, said Sui On Land Chairman
Vincent Lo.
It would have residential apartments, shopping malls, IT
training schools and R&D facilities, he said.
India's leading IT education company NIIT Ltd has signed
a memorandum of understanding (MoU) to set up its centre in
the software hub, which is being touted as largest in Asia.
"The NIIT centre would train around 1,000 professionals
in the first year of operation. We aim to scale it up to
10,000 in three years," said NIIT President Prakash Menon.
Dalian enjoys various advantages over other Chinese
cities. Besides Chinese, the city has a large number of people
fluent in English, Japanese and Korean languages, the labour
cost here is lower than Tier I cities like Beijing and
Shanghai.
Besides, it has good access to major cities in East Asia
and is home to several universities which ensure good supply
of graduates, said Genpact China Chief Executive Mitsuru
Maekawa.
The local municipal government is offering an attractive
set of preferential tax incentive and talent policies in
facilitating continuous growth of the IT industry.
The city government has supported us with various tax
benefits and training funding besides developing software
parks, said Mekawa.
According to a 2007 study by IDC, top Indian off-shoring
destinations like Bangalore, New Delhi and Mumbai are in
danger of being eclipsed by Chinese cities of Shanghai, Dalian
and Beijing as favoured centres for outsourcing.
Indian cities are highly ranked on global delivery index
(developed by IDC based on parameters like cost of labour and
rent, language skills and turnover rate), while Chinese cities
are on the rise and closely nipping at the heels of their
Indian counterparts, the study said.
Some of the reasons for this are China's massive
investment in physical as well as human infrastructure and
emphasis on foreign languages, especially English. PTI
Dalian (China), June 30 (PTI) - Inspired by Bangalore,
India's 'Silicon Valley', this city in north-east China has
set for itself an ambitious target of becoming world's top
Information Technology (IT) centre within a decade.
A scenic coastal city set among green hills, Dalian has
already attracted a large number of international and local
corporations to set up regional bases for Information
Technology Outsourcing (ITO) and Business Process Outsourcing
(BPO) services.
Among these are 34 Fortune 500 companies. "By 2017 or
2018 we hope to be a peer with Bangalore and Silicon Valley
(of America)," said Dalian Mayor Xia Deren.
"We are striving to be the No 1 software centre in both
China and the world," Xia told reporters ahead of the China
International Software and Information Services Fair (CISIS)
2008, which ended on June 21.
The annual event saw participation from some top-notch
companies like SAP, Neusoft, Ericsson and Microsoft.
Software export from Karnataka (mainly Bangalore) was
worth Rs 54,000 crore (USD 12.6 bn) in 2007-08, up from Rs
48,600 crore (USD 11.3 bn) in the previous year.
As compared, in 2007, the software export exceeded USD
700 million in Dalian, which had a workforce of 60,000 people
and was home to nearly 700 IT/BPO enterprises.
As many as 50 multinationals among Global 500 have set up
software R&D and service institutions here, a feat not
achieved by any other Chinese city.
It holds a unique position as the only software
outsourcing international model city in China, a country where
according to research agency IDC, IT market is estimated to
cross over USD 150 billion in 2008 and USD 200 billion in
2010.
Dalian is within an hour of flying from Beijing, South
Korea and three hours from Japan. It ranked fifth as
Asia-Pacific's top IT outsourcing destination in a survey by
IDC Corp in July last year, coming behind Bangalore, Manila,
Delhi and Mumbai.
In view of the city's booming market, it is predicted to
be the top IT service centre in North-east China, dominating
about 40 per cent of the whole output in the region.
Further pushing the case is 'Dalian Tiandi Software Hub',
a mega IT park being developed by leading Chinese property
developer Sui On Land Ltd and its two other sister entities,
Yida Group and Shui On Construction and Materials.
The hub, spread over an area of 26.5 sq km, would see an
investment of USD 2.5 billion and the first office building is
expected to open in December 2009, said Sui On Land Chairman
Vincent Lo.
It would have residential apartments, shopping malls, IT
training schools and R&D facilities, he said.
India's leading IT education company NIIT Ltd has signed
a memorandum of understanding (MoU) to set up its centre in
the software hub, which is being touted as largest in Asia.
"The NIIT centre would train around 1,000 professionals
in the first year of operation. We aim to scale it up to
10,000 in three years," said NIIT President Prakash Menon.
Dalian enjoys various advantages over other Chinese
cities. Besides Chinese, the city has a large number of people
fluent in English, Japanese and Korean languages, the labour
cost here is lower than Tier I cities like Beijing and
Shanghai.
Besides, it has good access to major cities in East Asia
and is home to several universities which ensure good supply
of graduates, said Genpact China Chief Executive Mitsuru
Maekawa.
The local municipal government is offering an attractive
set of preferential tax incentive and talent policies in
facilitating continuous growth of the IT industry.
The city government has supported us with various tax
benefits and training funding besides developing software
parks, said Mekawa.
According to a 2007 study by IDC, top Indian off-shoring
destinations like Bangalore, New Delhi and Mumbai are in
danger of being eclipsed by Chinese cities of Shanghai, Dalian
and Beijing as favoured centres for outsourcing.
Indian cities are highly ranked on global delivery index
(developed by IDC based on parameters like cost of labour and
rent, language skills and turnover rate), while Chinese cities
are on the rise and closely nipping at the heels of their
Indian counterparts, the study said.
Some of the reasons for this are China's massive
investment in physical as well as human infrastructure and
emphasis on foreign languages, especially English. PTI
