Competitive Advantage Analysis of Developing BPO in Xi'an Compared with Bangalore: on the basis of Porter's Diamond Model

The development of business process outsourcing (BPO) industry in Xi'an, China, is receiving considerable interest from North American and European companies currently under pressure to meet their growing manpower resource shortages and find new ways to cut costs. However, BPO is a nascent industry in Xi'an, and present a variety of challenges to manage effectively. This paper focuses on understanding management challenges for BPO development in Xi'an compared with Bangalore, and makes a qualitative comparative study on the basis of Porter's diamond model. The factors assessed include business conditions, physical infrastructure, IT infrastructure, government support, and various labor characteristics. Finally, some suggestions for developing BPO industry in Xi'an, China is proposed.