SIP Moving up the Value Chain

Tuesday, July 10, 2007 22:33
Comments Off on SIP Moving up the Value Chain

Suzhou is one of those cities that was definitely in the right place (next to Shanghai) at the right time (now) as the Suzhou Industrial Park has become on of the most famous in China (competes with TEDA for top of the pile).Suzhou Investment BPO

Following a very successful run, SIP is now looking to further increase investment in BPO, ITO, and other high tech areas, and it is easy to see why: they have one of the most highly skilled labor forces, Suzhou’s proximity to Shanghai and living conditions, existing high tech manufacturing, etc.

According to a recent report entitled Suzhou Industrial Park aims to be BPO hub in China

China and Singapore have agreed on new 10-year targets for the Suzhou Industrial Park.

The aim is for it to become a hi-tech, high value-added economy, and eventually become the leading Business Process Outsourcing hub in China.

Further, on the SIP website

There are so far over 400 enterprises involved in outsourced service in SIP, of which over 200 are software enterprises, 65 R&D institutions, and 20 animation enterprises. 7 of the software enterprises have passed the CMMI authentication, and one of them was certified for the highest Grade-5 authentication.

Annual turnover of software industry in SIP has exceeded 5 billion RMB, and outsourced software export has gone beyond USD 80 million, and the output value of animation industry over 500 million RMB

And all that happened before the recent policy/ designation… wich by the way means bonus incentives for investors!!!

It will be very interesting to see how SIP competes with Tianjin and Dalian who have strong BPO sectors already, and Chengdu and Xi’An which are promoting themselves as hotspots for BPO.

In my mind, SIP, Tianjin, and Dalian have a clear advantage when it comes to talent. their labor pools are highly trained and the management experienced, however as a few firms I recently spoke to will tell you.. they are getting expensive in terms of not only land (SIP has highest per meter rates in China) but also in terms of labor rates.

For those that are interested in exploring SIP, I encourage you to do so. Our experiences with them have been nothing less than world class, and while I wish they were a bit cheaper on a per meter basis, they have everything in place to support MNCs. If you have experience with SIP BPO, or in another city, share your experiences

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