Overview of Hefei
Hefei, capital of the Anhui province, is located in southeastern China between the Yangtze River and Huaihe River. Since ancient times, it has been called the first prefecture of the Jianghuai region. As one of the core cities for the national strategy to promote central rise, Hefei is also the political, economic and cultural center of Anhui province that borders the Yangtze River Delta to its east and central China to its west.
At the end of 2007, Hefei was honored as “China’s Outsourcing Base City” by the Ministry of Commerce. As a pilot city of technological innovation in China, Hefei boasts some R&D advantages thanks to the first-rate University of Science and Technology of China and Hefei Institute of Physical Science of China Academy of Science based in Hefei. Meanwhile, well-developed communication, network and transportation infrastructure and rich human resources have created the necessary conditions for developing service outsourcing.
Service outsourcing industry in Hefei
Goal of service outsourcing development in Hefei
Now Hefei has incorporated service outsourcing into its “Eleventh Five-year Plan” for major industries, and set its goals in 2010, end of the “Eleventh Five-year Plan” period.
1. The output value of service outsourcing businesses of Hefei will reach RMB 10 billion.
2. Hefei’s service outsourcing exports will reach US$ 500 million.
3. There will be over 50,000 service outsourcing professionals.
4. One hundred domestic and foreign companies will establish service outsourcing companies in Hefei, with 50 of which passing CMM/CMMI3 certification.
Preferential policies of Hefei Government to encourage service outsourcing
To support the development of service outsourcing, Hefei Government has formulated many policies, such as policies to encourage the development of the software industry, establishment of special funds for technological innovation. In August 2007, Hefei Government also issued the guidelines for promoting the development of the service outsourcing industry. The Hefei New and High Technology Industry Development Zone made preferential policies in land rights transfer, housing sale and rental for the companies based in the park.
Hefei Government also gives strong financial support by allocating RMB 50 million from its budget to facilitate the development of service outsourcing, with special emphasis placed on major service outsourcing companies, human resources training, public service, subsidy, international certification and support funds set up by the ministries of commerce, information industry, science and technology. The Government also provides financial support to exports of eligible service outsourcing companies. Besides, it also offers tax incentives and cuts 15% of income tax for the companies that are designated as new and high technology companies by the authorities of science and technology in accordance with national regulations.
Communication and transportation