[Industry Transformation] Guangdong boosts service outsourcing industries
2012-May-9 Source: Newsgd.com
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Guangdong officials plans to develop the Pearl River Delta area into a headquarter management service outsourcing base for international enterprises and a modern service outsourcing center in South China, according to Guangdong's Five-Year Plan.

Service outsourcing includes transferring one or several links in the production process from one company to specialized companies. It is widely used in fields such as IT services, finance, accounting, client services, research and development and product design.

International service outsourcing is part of the province's strategy to upgrade Guangdong's industrial structure. Developing service outsourcing is expected to help Guangdong achieve industry structure transformation and create opportunities to update the province's technology and educational resources.

According to Guangdong Vice Governor Zhao Yufang, Guangdong's outsourcing foreign and domestic contracts have seen a year-on-year increase of over 60 percent for three consecutive years. Guangzhou and Shenzhen are China's service outsourcing demonstration cities.

In 2011, Guangdong's service outsourcing contracts were valued at 5.39 billion USD, a year-on-year increase of 60 percent. The actual implementation outsourcing was valued at 3.45 billion USD, a year-on-year increase of 47 percent. Off-shore service outsourcing contracts were valued at 3.77 billion USD, a year-on-year increase of 48 percent and the actual implementation valued at 2.8 billion USD, a year-on-year increase of 47 percent.

In the coming years, Guangdong will continue to cooperate with Hong Kong and Macao's well developed services industry, consolidate the European and American market and expand markets in Korea, Japan and Southeast Asia.

Guangdong plans to strengthen competitive outsourcing industries such as the development and testing of embedded software and application software, and data processing of finance, insurance and accounting. The province also plans to develop core industries service outsourcing such as logistics, human resources management and exhibition services, as well as improving fundamental industries such as customer services and international data backup.

By 2015, Guangdong's service outsourcing trade volume is expected to reach at 200 billion RMB, among which, off-shore outsourcing trade is expected to be worth 10 billion USD. Currently, there are 5,000 service outsourcing enterprises in Guangdong, including 200 overseas companies.

(By Mo Qun)

Editor: Miranda
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