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Snug Fit

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.
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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.



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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.

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India, the global leader in outsourcing services such as software and call centers, employs about 350,000 people in an industry that earned 6.

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7 billion dollars in the year ended March 2005.
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However, rising costs could threaten India's headline position as major IT groups such as Apple Comput
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