Overview of Hangzhou
Hangzhou’s economic development is featured by a large number of promising private enterprises. According to the statistics from Hangzhou Statistics Bureau, in 2006, the added value of private economy amounted to 70.143 billion Yuan, occupying 45.2% of the added value in the service industry. Hangzhou has become the leading area of the economic development in Yangtze River delta as well as the gathering region for the headquarters of private economy. In 2007, Hangzhou’s GDP reached 410.389 billion Yuan, up by 14.6% if calculated by comparable price; the per capita GDP reached 61,313 Yuan or 8,063 dollars if calculated by the average exchange rate in 2007, up by 13.6%. From 2001 to 2007, the average growth rate of Hangzhou’s GDP reached 13.86% and that of per capita GDP 12.74%.
Service outsourcing industry in Hangzhou
Goal of service outsourcing development in Hangzhou
In 2006, Hangzhou released a Three-year (2008 – 2010) Plan of service outsourcing and gave priority to software development outsourcing, financial service outsourcing, network and digital added-value service outsourcing, telegraphic added value and operation service outsourcing. Besides, Hangzhou will take active stance to contract offshoring outsourcing and expand the export of high-end service products. It has made a clear plan for the development of service outsourcing industry.
First. By the end of 2010, the total volume of service outsourcing will have reached $1.924 billion with the total export of $1 billion.
Second. By the end of 2010, about 50,000 college graduates will be employed. Over 50,000 people will work in the service outsourcing industry and 10 domestic and foreign companies will have established outsourcing companies in Hangzhou. Among those companies, 50 ones should have CMMI/CMM3 certificates or above, and 5 ones should have CMM5/CMMI5 certificates.
Third. There will be one or two big companies with over 10,000 employees. 30,000 college students (including junior college students) will get training and 20,000 more job positions will be created.
Preferential policies of Hangzhou Government to encourage service outsourcing
In order to encourage the development of outsourcing industry, Hangzhou Government gives continuous policy support. Hangzhou government issued a series of policies, for example, “Opinions of the People’s Government of Hangzhou Municipality on the Development of Service Outsourcing Industry”, “Guidance of the People’s Government of Hangzhou Municipality on the promotion of brand development”, “Notice on the Standardization of the Process of Software Enterprise Authentification and Annual Audit”, “Regulations on the Management of Specialized Fund on Service Outsourcing in Hangzhou (trial implementation)”, “Regulations on the Establishment of Scientific Innovation Service Platform”, “Temporary Measures on the Promotion of Financing Guarantee for Innovation-oriented Companies”, “Opinions of the People’s Government of Hangzhou Municipality on the development and Protection of Intellectual Property Rights” and “Opinions on the Introduction of High-positioning Talents”. Those policies will promote the development of outsourcing industry to a large extent from various aspects such as specialized fund, enterprise authentification, market exploration, garden construction, talent training, export and property rights protection.
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