Chengdu looks to working with Singapore to capture global outsourcing market

Chengdu is looking to working with Singapore to capture a larger portion of the lucrative global outsourcing market.

The Chengdu-government backed software services provider TifoSoft Services opened its Singapore representative office on Tuesday.

TifoSoft says the office will serve as a launch pad for collaborations with Singapore companies to jointly explore opportunities in the United States and Europe.

According to an IDC research, IT outsourcing in China is estimated to grow at an annualised rate of nearly 40 percent between 2004 and 2009 - making it the fastest growing sector in the IT services market.

And with global business process outsourcing, or BPO, for offshore contractors estimated to be worth about US$24 billion, TIFOSoft sees great opportunities for growth.

It hopes to combine China's strong IT expertise at competitive cost with the Singapore branding to grow globally.

"We think if we want to expand our business in Europe and US, we need to be here and cooperate with the local companies," says Jade Zhang, Vice Chairman, TifoSoft Services.

Stephen Lim, chairman of Singapore infocomm Technology Federation says: "While we both compete, there are also a lot of space for us to collaborate as well, and that collaboration can improve both sides in terms of our global competitiveness.

"It may be seeking the correct partner in the short term. In the long term, I think it will upgrade both our industries significantly."