Overview of Chongqing
As one the four municipalities directly under the Central Government, Chongqing is one of the most important cities of China. Located in the center of the Yangtze River upstream economic circle and the connection of east and west China, Chongqing is long known as the hub of Southwest China. In Jun. 2007, Chongqing was nominated “National Experimental District of Coordinated Urban-Rural Reform” after Pudong New District of Shanghai and Binhai New District of Tianjin. As a key modern manufacture base of China and transportation hub of southwest region, Chongqing is the economic center of Yangtze River upstream and a key central city of China.
Service outsourcing industry in Chongqing
Nationally speaking, Chongqing’s service outsourcing was started relatively late with relatively small scale. In 2006, Chongqing’s service outsourcing export amounted to US$ 13.68 million by 146 enterprises, covering six major areas i.e. communication electronics, IT, culture radio, automatic institute, culture, education, hygiene and insurance, and project supervision and transportation. In Jan.-May 2007, Chongqing’s cross-border service outsourcing trade reached US$ 207,800, mainly by software, and the main enterprises include Cec-Techology and FarStone Software.
In this year, a batch of famous domestic and overseas software research and development institutions, including GDCC, GES, Fujitsu System, Oracle, Microsoft and ZTE, settled in Chongqing and created a good atmosphere for service outsourcing industry. A batch of local enterprises, including CISDI, Zenith, Zhengda Software, Adtech, Eabax, Yesky, Zhonglian Software, Born Tech and U-soft, have developed an industrial structure focusing on communication software, platform software, embedded software, information security software and digital entertainment software.
Comparing to ITO, Chongqing’s BPO is relatively weak but with great potential. Chongqing’s BPO business covers customer interaction service, insurance claim service and medical fee service, in which insurance claim, data content, salary and human resource service take the largest proportion. At present, Chongqing has over 100 consulting agencies. Some of them have started domestic service outsourcing business. For example, Chongqing Foreign Investment Promotion Center and Chongqing Foreign Service Company are providing human resource outsourcing service for foreign-funded enterprises.
Finance and insurance are the key area for Chongqing’s service trade. Over ten foreign banks and insurance companies including Scotiabank, HSBC, Allied Commercial Bank, ABN AMRO Bank, Metlife, Great Eastern, and Liberty Mutual have set up office in Chongqing. Financial outsourcing business is rising.
Chongqing Cuntan Logistic Park, Railway Logistic Park and Airport Logistic Park are about to be put into operation. Third-party logistic enterprises are invited into the parks, and goods distribution and delivery centers are under construction to develop international freight forwarding business.
Besides, Chongqing is also fast in service outsourcing personnel cultivation. At present, Chongqing has nearly 200,000 IT personnel and 50,000 software and information service personnel. Along with the settlement of a batch of domestic and oversea training programs like HP-Carnegie Mellon program and New Oriental program, and in combination of Chongqing’s public service platforms and probation bases for service outsourcing industry, Chongqing has formed a complete talent cultivation system, providing a sound talent basis for the development of the industry.
Goal of service outsourcing development in Chongqing
Chongqing’s goal for service outsourcing by 2010: To invite 10 famous multinational enterprises to transfer their service outsourcing business to China; cultivate 20 large and medium-sized service outsourcing enterprises with international qualifications; create advantageous conditions to fully undertake international (offshore) service outsourcing business, and continue to enhance service value, thus to promote Chongqing’s service outsourcing export to US$ 800 million by 2010.
Preferential policies of Chongqing Government to encourage service outsourcing
To accelerate the development of service outsourcing industry, Chongqing Municipal Government has issued various preferential policies, including Measures for Certifying and Managing Chongqing’s Software and Information Service Outsourcing Enterprises (Trial), Temporary Regulations on Accelerating the Development of Chongqing’s Software and Information Service Outsourcing Industry, and Notice of Chongqing Municipal Government on Issuing the Preferential Policies for Inviting Medium and Senior Software Talents etc. Besides preferential tax policies, the municipal government also offers maximum RMB one million as incentives to enterprises that have passed MOFCOM service outsourcing grading and with annual export of over US$ 500,000.
Communication and transportation