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A nice report about Chinese BPO

By chinasales ·
Watch out, India
From The Economist print edition
China is way behind India in the business of outsourced services, but it has now started to catch up
IN A vast curtained room in Xian in western China, rows of dark, pony-tailed heads are silently bowed, fingers moving quickly and expertly. They might be in any Chinese factory?except that they are not assembling shoes, nor soldering circuit boards, but sitting at computer terminals processing medical-claim forms from New York and car-loan applications from Detroit and marking examinations for high-school students in Melbourne, Australia. ?This is the future of the global back office,? says Michael Liu. Mr Liu, founder of CompuPacific International, one of China's few indigenous business-process outsourcing (BPO) firms, returned after a decade in health-care IT in America, determined to prove that China can do just as well as India in outsourced services.
It is fitting that this future should be emerging in Xian, an old imperial capital that was the final stop for caravans travelling east along the Silk Road from central Asia and the entry-point for new cultural and scientific ideas. Though tourists know Xian for its army of terracotta warriors, the capital of Shaanxi province is quietly becoming one of China's most modern cities. Xian is the birthplace of the nation's space programme, its aircraft-construction hub and home to one of China's biggest technology parks?a 35-square-kilometre Chinese Silicon Valley housing 7,500 companies and supported by more than 100 universities that churn out 120,000 graduates a year, half in computer sciences alone. And that is just the start. The Xian High-Tech Industries Development Zone will eventually span 90 square kilometres at a cost of 100 billion yuan ($12 billion), says Jing Junhai, its director.
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