Bangalore: Nine Bangalore-based entities on Friday signed MoUs with Chinese entities to explore possibilities for joint development through mutual cooperation. The MoUs were signed at the end of seminar held in Bangalore by the Suzhou Municipal People’s Government.
Wang Rong, Standing Committee member of the Jiangsu Provincial Committee of the Communist Party of China and also party secretary of the Suzhou city unit, said the agreements were likely to result in investments of $500 million by Indian companies in China, using the city of Suzhou for outsourcing operations.
He said while Bangalore enjoyed a reputation as a pre-eminent base for software and ITeS exports, Suzhou was used by global companies as a base for hardware exports.
Half the world production of laptops, for instance, was from Suzhou, Mr. Wang Rong said.
Although the city produced a significant proportion of the world output of televisions, cameras and video equipment, “it had much to learn from Bangalore’s in the field of IT-enabled Services (ITeS) and business process outsourcing (BPO),” Mr. Wang Rong said.
“It will take several years for Suzhou to catch up with Bangalore in the field of software because Bangalore started early,” he said.
“In return, Bangalore can learn from Suzhou’s experience as a major outsourcing destination for IT hardware,” he said.
The 100-member delegation visited several IT companies in Bangalore. Mr. Wang Rong said Suzhou offered many advantages to Indian companies which could have access to the Chinese market and also use it as a base for exporting to markets such as South Korea and Japan.