2008-11-18

Chengdu emerges as service outsourcing hub in China

Known as the world's largest factory, China has been a beneficiary of globalization in the past 30 years and enjoyed rapid growth over the past five years. However, due to weakening overseas demand, constraint of the country's natural resources and environment, the nation has shifted its attention to the services industry, aiming at achieving more sustainable economic growth.

Software development is one of the key sectors in the government's plan. From 2002 to 2007, the average annual growth rate of the industry reaches 40%, with the total revenue more than quintupled. In 2007, sales revenue of China's software industry amounted to RMB 584.3 billion, 21% higher than that in 2006.

Different from the manufacturing industry, which mainly concentrates on the developed eastern region of China, the software industry is not confined to any specific geographic locations. Therefore, many cities in China's vast hinterland are striving to emerge as new service outsourcing hubs. Up till now, China has selected 14 cities as service outsourcing bases, of which five are located in the west and central region.

Chengdu might be the most outstanding one among the five bases in the region. Since 2001, the service outsourcing industry in Chengdu has seen average growth of over 45% annually. In 2007, the total revenue of Chengdu's service outsourcing industry reached RMB 27 billion, with US$114 million worth of export. At present, Chengdu has been granted the status of the world's Top 50 emerging global outsourcing cities.

More than 110 contract-issuing clients are to attend the China Outsourcing Summit 2008 held in Chengdu from 18th to 20th November. The Summit is the nation's highest-level service outsourcing forum this year.

Source:http://info.hktdc.com/englishchinanews/index.asp?type=content&Path=&id=15958&CatID=

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