China Session – ‘India and China: Building Strategic Partnership for Future’, Weize YANG,...

Join Hands for Win-win Development

Speech by Mr. Yang Weize, Chief Executive of Wuxi

2008.02.14

www.wuxisourcing.gov.cn

The friendship between India and China dates back

to ancient times;

Thanks to its solid IT industry foundation, India has

taken the lead in the world as a service provider ；Indian Prime Minister, Dr. Manmohan Singh’s visit

to China early this year marks an even wider and

deeper cooperation between India and China.


China WuxiIndia Bombay

Famous Indian companies that have already entered China:

NIIT, Tata, Infosys Technologies, Wipro, Satyam and QAI


Wuxi is one of the first Chinese cities opening to the outside world.

By the end of 2007, there have been over 5,000 foreign-funded enterprises in Wuxi, among which 138 are invested by 73 of the Fortune 500 multinationals. The industrial output by large enterprises in Wuxi ranks No. 6 in China. Wuxi has trade and economic cooperation with 211 countries and regions.


Wuxi is China’s first service outsourcing demonstration zone.

Over 350 service outsourcing enterprises; 17 companies have obtained international

certifications above CMMI L3.

US$570 million

Offshore Business Volume:US$140 million

Wuxi’s Service Outsourcing Business Volume


Wuxi is the best investment destination for multinationals.

Close to Shanghai and called “Shanghai Jr.”; An important transportation pivot in the Yangtze River Delta, boasting convenient transport; Complete infrastructure and service facilities; Mild climate, suitable for both living and working

ShanghaiWuxi


City Status:

One of China’s 10 most dynamic cities in terms of economy;

One of Chinese Mainland’s top 10 cities in terms of

comprehensive competitiveness;

One of China’s cities with the best investment environment;

One of China’s cities with the best development potential;

Ranked No. 4 among the best business cities in Chinese

Mainland by Forbes in 2007;

One of China’s best cities for investment by multinationals


1. India boasts rich experience while Wuxi has strong government support. Most big Indian service outsourcing companies were set up in the 1980’s

with rich experience, whereas their Wuxi counterparts started only in recent

years, however, with strong government support, they are making

accelerated development. The government of Wuxi is among the best in China in terms of service

and administration.

Wuxi and India have broad prospects for the cooperation in service outsourcing.


Wuxi has formulated the most preferential policies in China:

“Policies of Wuxi’s ‘123 Project’ to Attract International Service Outsourcing and Software Export Enterprises” (called “123 Project” for short) will provide eligible enterprises with special preferential policies like office rent exemption or reduction, granting of subsidies, tax incentives, reward for export and talents, etc.


2. Indian companies have advanced software technology while Wuxi boasts sufficient human resources.

In Wuxi, there are over 100,000 students studying at higher education institutions and over 300,000 technical staff of various kinds. Within a 150km radius of Wuxi, there are over 100 universities with 2 million students and many national research institutes. The average annual salary in Wuxi is about US$4,700, while that for service outsourcing talents is around US$ 8,000.


The No. 1 Japanese investment destination in China; Investment from South Korea in Wuxi is increasing dramatically, among which the total investment of Hynix-ST has amounted to nearly US$ 4 billion; 90% of Wuxi’s service outsourcing business comes from Japan and South Korea; Cooperation with Wuxi will help Indian companies make better access to the Japanese and South Korean markets.

3. Indian companies occupy a large share in the European and American markets, while Wuxi boasts competitiveness in the Japanese and South Korean markets.


4. India enjoys the scale advantage in service outsourcing while Wuxi boasts good infrastructure for development.

To construct 20 service outsourcing parks in two years under the framework of “China’s Service Outsourcing Demonstration Zone—Wuxi Taihu Protection Zone ”; IBM’s “China Cloud Computing Center” has been set up in Wuxi; Wuxi has one of the 36 major ports for China’s international telecommunication; China Telecom’s “International Data Center” is now under construction in Wuxi. When completed, it will be able to provide data and telecommunication services for over 300 service outsourcing companies.


5. India enjoys advantages in the international market while Wuxi boasts advantages in the Chinese market.

Outsourced services from European- and American-invested

enterprises in China;

Outsourced services from China—the “world factory”;

Outsourced services from China’s large and complete

industrial system and its vast domestic market


Formulating a series of local IPR laws, rules and regulations, strengthening the

enforcement of IPR laws, and striking hard against IPR infringement; The State Intellectual Property Office has set up the National IPR Park for Industrial

Design in Wuxi; Wuxi encourages enterprises to acquire certifications like ISO27001 and SAS70, and

will fund for this.

Wuxi Municipal Government has designated the year 2008 as the year of “Vigorously Building the City through Quality and IPR” .


To develop service outsourcing into a pillar industry of the

city in 8 to 10 years;

Wuxi boasts prominent advantages, broad market and great

opportunities in developing the service outsourcing industry.

Developing international service outsourcing industry has become Wuxi’s city strategy.


NIIT has set up a training center in Wuxi with an annual training capacity of 2,000 students. Mr. Vijay Thadani, CEO of NIIT, has paid a visit to Wuxi and signed an agreement on strategic cooperation with Wuxi Software Park. Wuxi has set up the business representative office in Bangalore.


Welcome to Wuxi for

business,

pleasure,

and living!

Work together to develop a win-win situation

Work together to develop a win-win situation

Thank You!

China Session – ‘India and China: Building Strategic Partnership for Future’, Weize YANG,...

Economy & Finance

Transcript of China Session – ‘India and China: Building Strategic Partnership for Future’, Weize YANG,...