Data

1. Data from Ministry of Commerce reveal that China’s outsourcing service providers were awarded with a total of 60,247 outsourcing contracts in 2009, a growth of 142.6% year on year, with the value standing at USD20.01 billion which represented a year-on-year growth of 185.6%. Of the total value, USD14.77 billion went to offshoring outsourcing contracts, posing a year-on-year growth of 153.9%. ITO continued to be the major form of outsourcing business, with a contract value at USD11.87 billion, which accounted for 59.3% in the total. The major client bases were the United States, Japan and Hong Kong of China which together gave out a USD7.91 billion worth of outsourcing contracts, accounting for 39.6% of the total.

2. According to data from the outsourcing and software export information management system of Ministry of Commerce, up till the end of December 2009, there had been 606 registered outsourcing firms in Shanghai employing over 100,000 people. The offshore outsourcing contracts acquired in 2009 totaled USD1.683 billion in value, up by 18.3% over 2008.

3. In 2009, software export contributed to Liaoning Province a revenue of USD480 million, which, posing a growth of 36.3% over 2008, accounted for 31.2% in the nation’s total software export revenue of USD1.54 billion, ranking first among all provinces. 

4. In 2009, the outsourcing contracts won by Hunan-based service providers were valued at USD558 billion, which increased 2.46 folds over 2008. The value of delivered contracts in the year stood at USD332 million, an increase of 1.8 folds.

5. By 2009, there had been 320 companies engaged in software and outsourcing business in Heilongjiang Province. The output of the industry in 2009 is expected to reach over RMB10 billion.

6. In 2009, Fujian Province witnessed a continued rapid development of software industry, with the revenue from software and system integration sales reaching RMB41 billion and software export being valued at USD91 million, respectively posing a year-on-year growth of 36.7% and 32.1%.

7. In 2009, Sichuan-based outsourcing enterprises won a USD160 million worth of offshore outsourcing contracts, while the delivered contracts were valued at over USD100 million, which increased by more than one fold over 2008.

8. According to Economic and Information Technology Commission of Anhui Province, in 2009 Anhui Province reaped a revenue of RMB130 million from software outsourcing business, a year-on-year growth of 40%, and profits made by Anhui-based software companies grew by 19% to reach RMB880 million.

9. In 2009, the software services industry of Xinjiang Province achieved a revenue of RMB1.68 billion, 90% up over 2008.

10. In 2009, the outsourcing contracts won by the outsourcing service providers based in Nanjing, Wuxi and Suzhou were respectively valued at USD1.352 billion, USD1.067 billion and USD1.047 billion.

11. Hangzhou Municipal Foreign Trade and Economic Cooperation Bureau has recently revealed that in 2009 Hangzhou-based outsourcing firms obtained a USD1.417 worth of outsourcing contracts, with the offshore outsourcing contracts valued at a total of USD1.137 billion.

12. In 2009, Wuhan reaped a revenue of RMB24.3 from the outsourcing business, an increase of 10.5% over 2008. The number of enterprises engaged in offshore outsourcing business increased by 35 to reach 96. Wuhan Outsourcing Association has predicted the revenue to top RMB50 billion in 2012.

13. The revenue achieved by Harbin-based outsourcing enterprises from outsourcing business in 2009 totaled RMB7.2 billion, and the employment scale of the industry was expanded by 47.7% to reach 1.304 million.

14. In 2009, the added value produced by the tertiary industry of Guangzhou reached RMB553.5 billion, with the proportion in the city’s GDP surpassing 60% for the first time to top 60.97%, which was second only to that of Beijing.

Call Centers

1. On February 6 of 2010, Shuotai Business Technology Co. Ltd., a call center joint venture funded by cross-Straits enterprises, was established in Xiamen. With the aim to evolve into the largest national-level call center at the west side of the Taiwan Straits, the company will base its business in Xiamen and gradually expand to the whole country.

2. China Mobile Guangdong Branch has announced the plan to invest more than RMB2 billion in the construction of TD networks (including basic information networks) within 5 years and extend an investment of RMB420 million to build a G3 data processing center in Guangdong Financial High-tech Zone and a call center in Foshan city.

3. China Pacific Insurance has recently completed the consolidation of customer call services of its 37 branches to the three call centers in Shanghai, Zhengzhou and Changsha, an indication that the company’s call services have entered an intensive mode.

4. On February 25 of 2009, China Mobile Shanghai Branch added Spanish and Arabic services to its 10086 and 12580 hotlines, which now can offer services in English, Japanese, Korean, French, German, Spanish, Arabic and Cantonese. 

Corporate Financial Results

1. On February 25 of 2010, VanceInfo reported its unaudited financial results for the fourth quarter and the full year ended December 31, 2009: Net revenue in the fourth quarter of 2009 increased to USD43.3 million, up 43.8 % from USD30.1 million in the fourth quarter of 2008; net revenue for the full year 2009 were USD148.1 million, up 44.2% from 2008.

2. On February 18 of 2010, Inspur announced its financial results for the year 2009: Revenue increased by 17.08% year on year to reach RMB27.19 billion, with the net margin up by 30.14%. Inspur expects a growth of over 15% in its revenue in 2010.

Foreign Businesses Operating in China

1. Japanese financial service group Orix Corporation announced plans on February 10 of 2010 to set up its China headquarters in Dalian, Liaoning province, in a bid to tap into the nation’s growing financial markets. Established with an initial registered capital of USD92 million, Orix (China) Investment Co., Ltd. expects to invest up to USD3.2 billion in China over the next three years and eventually transform into a localized financial service group with total assets of USD14.7 billion.

2. In February 2010, UPS announced plans to significantly increase its global service parts logistics network by establishing 101 new field stocking locations in China. With the expansion, UPS will cover 89 key cities across China with more than 110 bonded and non-bonded field stocking locations.

3. On February 3 of 2010, Simon Leung, Chairman and CEO of Microsoft Greater China Region, revealed that in the fiscal year of 2009 Microsoft outsourced a total of USD142 million worth of projects to China, adding that Microsoft would further invest in the R & D field of China.

4. On February 9 of 2010, PHNS announced its cooperation with iSoftStone in implementing new accelerated claims resolution services for hospitals in the United States.

5. Capgemini China Delivery & Sharing Center and Financial Service Delivery Center have been recently moved to Huaqiao Outsourcing Base of Kunshan, Jiangsu Province, an act to further expand Capgemini’s customer base in China. Headquartered in France, Capgemini is a world-leading management consulting, technology and outsourcing service provider that employs nearly 10,000 people.

Awards 

In February 2010, China’s Beyondsoft, Insigma, ChinaSoft International, China Talent Group, hiSoft Technology International, Inspur, Neusoft and VanceInfo were named in The 2010 Global Outsourcing 100 produced by IAOP. Included in the list are also other world-leading outsourcing service providers including IBM, Infosys, Wipro, Tata Consultancy Services, Accenture, etc.

Others

1. Sichuan Provincial Government has recently introduced a document entitled Western China Financial Center Construction Planning 2010-2012, which sets the goal to build Chengdu into the center of financial services in Western China before the year of 2013.

2. Nanchang has been reported to provide an annual special fund of no less than RMB10 million to support Nanchang National Biomedical Industry Base in building the capacity for undertaking large-size projects.