Devott Insights：2.0 Times of China’s Service Outsourcing Industry Development- Part 1

In response to the release of the Reply to Questions on the Promotion of Service Outsourcing Industry Development by the General Office of the State Council and the speech of Mr. Wang Qishan, Vice-premier of the State Council, on the Service Outsourcing Work Seminar held in Nanjing on February 2nd, all the service outsourcing base cities in China quicken their steps on the development of service outsourcing industry.

The release of the "Response" officially indicated the start of a new wave of development for the outsourcing industry in major cities of China. Following the "Thousand Hundred and Ten Project", it becomes another milestone in China’s service outsourcing industry development. From the Ministry of Commerce to the State Council, this is the first time to propose to establish service outsourcing demonstration cities on national level. Which reveals China’s determination to support the service outsourcing industry. Putting the promoting of service outsourcing industry as an important way to boost industrial restructuring, to change foreign trade development mode and increase employment opportunities for college graduates, China is going to foster international brand of "China Service ".

Since the Response was released, the whole country embraced another upsurge of service outsourcing industry development. Take Chongqing as an example, the city which was not noticeable in the software outsourcing field also show their outsourcing card, and specially make a public bidding on the Chongqing software and information services outsourcing industry development plan which is regarded as "one action with a great significance to Chongqing’s development”. Eventually Ernst & Young (China) EDS Consulting Limited Company won the project at a price of 3.18 million RMB. Although the whole project amount has not been finally determined, but the action of using millions of RMB to make a special plan on one industry still tells Chongqing’s attention and support to the software outsourcing industry.

Comparing to the new arrival of service outsourcing Chongqing, the national support gave more courage to those cities with good software outsourcing tradition and atmosphere such as Dalian, Wuxi and so on.

Not only service outsourcing demonstration cities, the software parks also emerge like bamboo shoots after a spring rain around the country, such as Tianjin Binhai Service Outsourcing Industry Park, Wuxi “PARK" series Park and so on; all kinds of international software outsourcing meetings pour in; every local government vigorously releases various subsidies and industrial support policies, while at the same time makes industry development plan, development goals and missions.

Devott regards the "Response" as a symbol of the 2.0 time of China’s service outsourcing industry development, competition in the service outsourcing market will become increasingly intense. In order to win in the fierce competition, every software outsourcing enterprise and city needs not only preferential policies, but what is more important, to enhance inner strength, make a specific position, and to construct its own core competitiveness.

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