India sees China as IT partner

CHINA has the potential to develop a large IT-BPO (Business Process Outsourcing) industry, said a report released by NASSCOM, an Indian IT chamber of commerce, in New Delhi yesterday.

With a substantial domestic market potential, a sizable educated work force and strong government emphasis on developing the sector, China will become a major player in IT-BPO industry, said the report.

The NASSCOM report "Tracing China's IT Software Services Industry Evolution," the first in a series of such write-ups, shows that the chamber considered China as an alternate market, a competitive destination and potential partner for India.

"China has come a long way in establishing itself as a destination for IT sourcing, with all stake holders, including government, academia and industry, working towards improving the regulatory environment, offering incentives to IT companies and increasing the talent pool," NASSCOM President Kiran Karnik said at a press conference.

The sector of IT software and services is a fledging one for the Chinese economy and was estimated at US$12.2 billion in terms of revenue in 2006.