[photopress:zones_suzhou_high_tech_zone.jpg,full,alignright]Nine companies or entities from across China and India — each side of the border — have signed separate agreements to explore mutual benefits and help each other achieve joint development. These were signed under the aegis of Suzhou Municipal People’s Government.
Indian entities that signed the MoU included Zaza Technologies, Bangalore Chamber of Industry and Commerce, Standard Chartered, Capgemini Group, Sunpa Sobha Software, Patni Computer, Logistic Solutions, Hero Mindmine and Excelerate Technology.
This means that Bangalore, the IT Software Outsourcing hub of the world and Suzhou, the IT hardware manufacture outsourcing hub are going to work together which will be a major step forwards in Information Technology in both countries.
Chou Weiquiang, vice-mayor, Suzhou Municipal People’s Government, said, ‘The cooperation in the services outsourcing field between China and India is not only necessary for the software/hardware enterprises from both the countries to face international competition but also indispensable for the development of the services outsourcing industry in China and India as well.’
It is a remarkable development and could mean a major boost in the area.
Built around the Yangtze River delta, Suzhou has developed into one of the most important IT hubs of China and now it will be an ‘offshore outsourcing’ nerve center directly connected and co-operating with its Indian equivalents.
The services outsourcing industry of Suzhou (software alone) during 2007, had an output of $3.5 billion (including embedded software) of which exports accounted for $1.2 billion The city so far has attracted over 400 software enterprises, among which more than 80 are involved in software outsourcing business.
Add to that concentration of talent and enterprise the cooperation with the Indian side and you have a Chindia Silicon Valley. (And, no, the word Chindia was not invented for this article. Look it up in Google and you will find there are hundreds of entries.)