Trade Resources Policy & Opinion Official from the Department of Trade in Services and Commercial Services Comments on the New Situations and Features of the Service Outsourcing Industry in January-May

Official from the Department of Trade in Services and Commercial Services Comments on the New Situations and Features of the Service Outsourcing Industry in January-May

According to the statistics, the contract value of service outsourcing signed by Chinese enterprises reached US$42.5 billion in January-May, with an increase of 6.3% year on year and the executed contract value totaled US$31.08 billion, with an increase of 14% year on year. The contract value of the offshore service outsourcing was US$26.36 billion, with a decrease of 2.6% year on year and the executed contract value was US$20.46 billion, with an increase of 10.3% year on year.

The head of the Department of Trade in Services and Commercial Services pointed out that in the past five months, the service outsourcing industry presented the following features:

Firstly, the strategy of “Internet+” promoted the rapid development of the onshore service outsourcing market. The development strategy of “Internet+” promoted the development of innovative integration between the Internet and service industry and the manufacturing industry, constantly released the market potential of the onshore service outsourcing and pushed forward the rapid development of the onshore market of service outsourcing. In January-May, the contract value of onshore service outsourcing totaled US$16.14 billion, with an increase of 24.8% year on year and the executed contract value reached US$10.63 billion, with an increase of 21.7% year on year, obviously higher than the development growth of the offshore service outsourcing.

Secondly, the emerging market development of the service outsourcing presented a favorable situation. The United States, the EU, Hong Kong and Japan are the major contract awarding markets buying Chinese service, but in the past five months, the contract awarding presented the varying degree of decrease. China actively developed the emerging market and the contract value undertaking from countries and regions such as Singapore, Korea and Taiwan reached US$1.74 billion, US$1.64 billion and US$1.15 billion respectively, with an increase of 24.4%, 22.8% and 21.5% year on year.

Thirdly, efforts had been made to continue to deepen the service outsourcing cooperation with countries along the line of the “Belt and Road Initiative”, especially the growth of service outsourcing undertaking from the Southeast Asian countries was obvious. In January-May, the contract value of service outsourcing undertaking from the countries along the line of the “Belt and Road Initiative” reached US$5.32 billion, with an increase of 19.8% year on year and the executed contract value totaled US$3.42 billion, with an increase of 4.8% year on year. The contract value and the executed contract value of service outsourcing undertaking from the Southeast Asian countries were US$3.25 billion and US$2.12 billion, with an increase of 23.9% and 15.7% year on year respectively.

Fourthly, the integration strategy of Beijing, Tianjin and Hebei drove the rapid development of offshore service outsourcing of Hebei province. With the implementation of the strategy of the “integration of Beijing, Tianjin and Hebei”, Hebei province began to orderly undertake the transference of the information industry of Beijing and Tianjin and the service outsourcing industry presented a rapid development. In January-May, the contract value and the executed contract value of the offshore service outsourcing of Hebei reached US$845.9 billion and US$451.26 billion, with an increase of 772.9% and 353% year on year respectively.

Source: http://english.mofcom.gov.cn/article/newsrelease/policyreleasing/201506/20150601016794.shtml
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