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-August

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-August

According to the statistics, the contract value of service outsourcing signed by Chinese enterprises reached US$71.65 billion in January-August, with an increase of 6.6% year on year and the executed contract value totaled US$45.58 billion, with an increase of 12% year on year. The contract value of the offshore service outsourcing was US$45.58 billion, and the executed contract value was US$35.68 billion, with an increase of 2.3% and 10.3% respectively; the contract value of the onshore service outsourcing was US$ 22.69 billion, and the executed contract value was US$ 15.48 billion, up 14.9% and 15.7% respectively.

The head of the Department of Trade in Services and Commercial Services pointed out that in the first 8 months this year, the service outsourcing industry presented the following features:

1. The service outsourcing of the provinces and municipalities alongside the Yangtze River Economic Zone enjoyed a good development momentum. In January-August, the contract value of offshore service outsourcing undertaken by the 11 provinces and municipalities alongside the Yangtze River Economic Zone reached US$ 28.17 billion, and the executed contract value was US$ 22.5 billion, accounting for 61.8% and 63.1% of the national total respectively, and up 12.4% and 13.4% respectively, maintaining a good development momentum.

2. The contract value of service outsourcing of the provinces in the Middle and Western China grew rapidly. Because of the rapid increase of operating cost of the enterprises and the backflow of talents to the second and third-tier cities, the service outsourcing industry began to transfer from the Eastern and Coastal region to the Middle and Western region. In January-August, the contract value of service outsourcing undertaken by the provinces in Middle and Western China was US$ 8.61 billion, up 44% year on year. While the contract value of the outsourcing of the provinces in Eastern China was up only 2.9% year on year.

3. Exploit of the EU service outsourcing market of gained obvious achievements. In January-August, the contract value of service outsourcing undertaken by China from the EU reached US$ 5.41 billion, up 19.2% year on year, higher than the other major open tender contract markets. China actively developed the EU market and undertook service outsourcing contracts from Germany, Britain, France and Switzerland, gaining obvious achievements. for example, AsiaInfo signed a software service agreements valued £ 186 million with the largest telecom operator in Britain, entering the core market of telecom market in Europe.

Source: http://english.mofcom.gov.cn/article/newsrelease/policyreleasing/201509/20150901118949.shtml
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