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.