"Chinese companies are keen to promote joint ventures to compete with the international players and both the countries should jointly identify areas for tie-ups in business process outsourcing and knowledge process outsourcing," Wu Yi Min, who is leading a 20-member IT delegation to India, said.

The industry chamber Assocham and the Guangzhou standing committee of China have decided to set up nodal agencies, an Assocham statement said on Monday.

The Chinese companies, which have initiated an exercise for setting up joint venture projects in either country, include Tianhe Software park, Timhe Software park, Guangzhou Radio group, Guangzhou Huawei Software Co and Guangzhou Maywide Technology.

Some sectors like manufacturing, medical, biotech and finance, have the potential of emerging as BPO and KPO segments, Min said.