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Ning Wright, Partner in Charge, Sourcing Advisory, KPMG China — The China government has been taking a number of initiatives because they have recognized that the traditional Chinese industry of export is somewhat tampered because of the global downturn recently. So, the country has now focused their attention on the outsourcing industry. The government has introduced a number of stimuli to boost this industry. For instance, in 2006, they have already introduced 1,110 projects that focus on promoting 1000 service providers to support 100 international companies in 10 cities. Since then, more focus has been put on this project; in January 2009, they increased the cities to 20 destinations in China, including Beijing, Shanghai, Guangzhou and a number of cities across China. This will help China to promote outsourcing to the rest of the world.
Edge Zarrella, Global Head, IT Advisory, KPMG LLP — If you look at the way China has been over the past 4 to 5 years, the story has always been about India. A number of reasons and perceptions were attached to China, and the western world did not look at it as a place, where people would move their infrastructure, both in IT and business processes, and now even Knowledge Process Outsourcing. In the last two to three years, as the organizations are focusing on the global market and saying, “Where else could we go?”, people just do not want to choose India and so China is now rising and is becoming a place, where people want to say, “Look, it is not India. I might get to China.” I think the infrastructure in China is very good.
Gary Matuszak, Global Chair, Information, Communications & Entertainment, KPMG LLP — A lot of what is happening is the fact that, as you look at China, there is a major focus and emphasis by the Chinese government to make outsourcing as one of the major industries, as they move from a manufacturing to a service economy — from ‘Made in China’ to ‘Invented in China’ — and build their own intellectual property and industry,
Edge Zarrella — I also think the talent pool is just as good as India, if not better. People are looking at China that is why I think it is becoming the emerging force in outsourcing.