The Economic Times Online Printed from economictimes.indiatimes.com > News By Industry > Infotech> ITeS -------------------------------------------------------------------------------- India to train Chinese tech pros ANIL K JOSEPH
PTI[ THURSDAY, JANUARY 27, 2005 11:11:09 AM] BEIJING: A Pune-based company has inked an agreement with the Shenzhen government to train some 1,000 Chinese software project managers in India with a view to transform the booming southern Chinese city into the outsourcing capital of the Communist giant. Some 1,000 software project managers will undergo training in India in a government scheme to turn Shenzhen city into China's top software outsourcing destination, director of the administration office of Shenzhen Software Park, Zeng Guozhong said. The agreement was signed on Wednesday after several months of negotiations with Zensar Technologies, a RPG Group company, to set up the Centre of Excellence (CoE), an organisation to provide courses and work experience for China's software project managers, Zeng was quoted as saying by China Daily on Thursday. The Chinese trainees will learn etiquette, communication and negotiation skills as well as international standards for the software outsourcing industry for three months, Zeng, whose office selects candidates for the programme, said. They will then go to work for Zensar in dealing with US and European clients for their remaining time in India before their six month training period ends, he added. Zeng admitted that Chinese software companies did not have the wherewithal to win major outsourcing deals from Western countries. "The companies are frustrated, not because they can't win deals, but because they're not sure how to run the projects successfully. The lack of qualified project managers is becoming a serious problem," Zeng said. More industry insiders, quoted by China Daily say they are starting to believe China will become India's strongest competitor, which currently has a 90 per cent share of the US and European software outsourcing business. A survey by AT Kearney, a leading consultancy company, suggested that China should improve management skills as well as better language proficiency and education to grab a larger stake in the outsourcing market. To take a bigger slice of the industry, the local government has also pledged to allocate more funds to improve infrastructure. "The municipal government and district government will invest at least 600 million yuan ($72.5 million) this year to improve the infrastructure and working conditions of local software companies," Shenzhen vice mayor Liu Yingli said. "The project is significant since the human factor is becoming more and more crucial to the development of the city's software outsourcing industry," Zeng said. "Without sufficient project managers with international experience, the software companies will become less attractive to foreign clients, especially from Europe, the United States and Japan," he said. The Shenzhen government will subsidise 1,000 such trainees over three years with 15,000 yuan ($1,812) each, or about one-third of the total training fee. The rest will be paid by the companies and individuals. The scheme may be applied nationwide in three years, Zeng said. The software outsourcing business has grown rapidly in this IT-driven southern boom town riding a wave of foreign companies selecting China as an IT offshore (ITO) and business offshore destination (BPO). It's estimated that the software outsourcing business generated an output of about $100 million in 2004, doubling the figure of a 2003, said Zeng, predicting that annual growth could be maintained at about 50 per cent. According to Gartner Group, China's ITO business is expected to grow at 44 per cent annually, potentially becoming a $2.5 billion industry by 2008. ©Bennett, Coleman and Co., Ltd. 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