In what could probably be the first of its kind venture, two Indian firms today signed an initial pact with a Chinese industry body to train Chinese students in skills required in the booming outsourcing sector.

China-based Xi'an Service Outsourcing Development Association signed an MoU with Starting Point Competence Training Pvt Ltd and Snam Abrasive to enhance the level of certification and training required for the BPO industry.

The memorandum of understanding, signed at the Xian-Bangalore Service Outsourcing conference, stresses on joint efforts to encourage, stimulate and formulate competency developmental activities that would promote the BPO industry in Xi'an. The city in western China is referred to as the capital of that country's BPO industry.

Wang Qi Wen, departmental chief of organisational department of Xi'an Municipal Committee, said though the city had a rich amount of talent, it lagged behind in training. He also sought cooperation with Indian companies to enhance
training facilities in Xi'an.

India has gained worldwide recognition in the past few years as a hub of outsourcing activity, with hundreds of English-speaking students graduating from colleges and universities every year. Neighbouring China, on the other hand, is more known for its manufacturing prowess and has only recently speeded up efforts to tap the services sector.

"By 2010, we will provide suitable jobs for 100,000 college students and attract 1,000 companies from home and abroad to set up outsourcing firms in Xian," said Wang Yi, president of Xi'an trade and economic cooperation bureau.

Various measures would be taken to provide training and industrial support, promote investment and protect intellectual property rights among others, he said.