Snug Fit

(L to R): Nasir Uddhin Chowdhury - MD, Lanka Bangla Securities, Ajith Fernando - Group CEO, CAL, Naveed Vakil – COO, AKD Securities

SHANGHAI, Sept 8, 2006 (AFP) – Already known as the world’s factory floor, China now wants to turn into an international outsourcing powerhouse, a report said Friday, a move which could challenge India’s prominence in the industry. Outsourcing will become a new area of foreign investment for the country and China will encourage multinationals to outsource from here, the official Xinhua news agency quoted Vice Premier Wu Yi saying at a forum in the southeastern city of Xiamen.

China, already a favorite with multinationals for manufacturing and research and development would make a snug fit for outsourcing services, Wu said.

With four million graduates entering the workforce every year China offers a huge pool of talent for high-end industry outsourcing, she said.

China wants to restructure its low-end manufacturing economy by investing in services, outsourcing, high-end manufacturing and Research and Development services, Wu said.

India, the global leader in outsourcing services such as software and call centers, employs about 350,000 people in an industry that earned 6.7 billion dollars in the year ended March 2005. However, rising costs could threaten India’s headline position as major IT groups such as Apple Comput