According to the data from Ministry of Commerce, the international outsourcing contracts completed by the outsourcing enterprises in China in the first six months of this year reached $2.56 billion, an increase of 32.5 percent. There were 1,406 newly established outsourcing companies, and an increase of 297,000 employees, 239,000 of whom were college graduates.
The data from Ministry of Industry and Information Technology indicate that during the first six months of this year China’s software industry gained a total revenue of RMB427.02 billion, a rise of 22.7 percent compared with the same period of last year. Of these, the revenue from software outsourcing reached RMB12.27 billion, an increase of 87.7 percent; the dollar amount of software exports reached RMB8.34 billion, an increase of 47.4 percent compared with the same period of last year; the amount of software outsourcing exports was RMB9 billion, up 64.5 percent in the year-ago period.
Asian Development Bank (ADB) has predicted a 3 percent economic growth rate for emerging Asian economies, while an increase of 7 and 8 percent for China in the year of 2009 and 2010 respectively. On the other hand, the emerging industrial economies are facing a 3.3 percent decline rate this year, but an increase of 3.5 percent is expected next year. There are noticeable gaps within countries in the Association of Southeast Asian Nations (ASEAN) - an increase of 4.5 and 3.6 percent for Vietnam and Indonesia respectively, Thailand, in contrast, to suffer a 2 percent decline rate.
According to the data recently revealed by TPI, the global purchasing data and advisory company, in the second quarter of 2009, the number of commercial outsourcing contracts valued at $25 million or above was 135 world-wide, a decline of 7.5 percent from the first quarter of this year. Although the total contract value rose 5 percent sequentially to $20.5 billion, the annualized contract value (total contract value divided by the duration of the contracts) fell 5 percent from the previous quarter to $3.6 billion.
Gartner has conducted a software expenditure survey, which interviews 1,000 IT experts around the globe. The results have shown that the budgets of software purchases climb an average of 1.53 percent from 2009, with the Asia Pacific market seeing the biggest increase.
The General Administration of Press and Publication has stated that in 2009 China’s online games industry is expected to increase by 30-50 percent to a total of RMB24-27 billion, directly contributing a total income of RMB67 billion for telecommunications and IT industries.
In the first two quarters of this year, China’s logistics industry grew to RMB42.9 trillion, a real growth of 16 percent after deducting price factors compared with the same period of last year. The industry witnessed a growth of RMB900 billion during the first six months, an increase of 21 percent. In the same period of time, the fixed assets investment in the logistics industry increased 61.8 percent, which indicates that new investment hot spot has been shifted to the logistics industry.
A media release said that currently the total value of biomedical R & D outsourcing market has reached as high as $28 billion, with a 16 percent annual growth rate. It is expected that the market is going to grow to $36 billion till the year of 2010. China, as an outsourcing destination, is witnessing the fastest growth.
Department of Foreign Trade and Economic Cooperation of Jiangsu Province has said that till the end of June 2009 the dollar amount of offshore outsourcing contracts got by outsourcing enterprises in Jiangsu had reached $1.85 billion, which increased by 72.3 percent over the first six months of last year provincial wide. Of the amount, the offshore outsourcing contracts completed in the period accounted for $1.14 billion, up 98.1 percent compared with the same period of last year. Till the end of June, Jiangsu had catered 2,290 outsourcing enterprises, one third of the national total, employing 290,000 staff, a quarter of the national total. 72.5 percent of the employees were university graduates. Also, there had been 95,000 new jobs created, one third that of the national total, an increase of 65 percent compared in a year-ago period.
During the first six months of this year, the outsourcing contracts completed by the outsourcing enterprises in Hangzhou totaled a value of $209.2794 million. The value of executed offshoring contrasts massively grew 101.04 percent to $193 million, which accounted for 77.2 percent of the 2009 year plan.
Wuxi enjoyed a value of $790 million in outsourcing contracts signed during the first half of this year, an increase of 77% over the same period of last year, while the value of contracts completed during the period was 520 million dollars, which increased by 90% year on year. $480 million of the outsourcing contracts went to offshoring contracts, an increase of 80% year on year, while the executed offshoring contracts reached as high as 320 million dollars, up 130% over the same period of last year. Offshore outsourcing has become the new growth point for Wuxi.
During the first half of this year, Qingdao achieved a total amount of $62.9745 million in outsourcing contracts, with $39.7097 million executed contracts, an increase of 96.11 percent and 150.39 percent respectively.
From January to June this year, there was 57 new outsourcing enterprises set up in Kunshan, 25 of which are foreign-owned. The value of outsourcing contracts reached $56.4974 million, an increase of 284.16 percent over the same months of last year. The total amount of executed offshore outsourcing contracts touched $35.5272 million, an increase of 472.9 percent compared with the same period of last year.
(Reproduced from "ChinaSourcing" magazine)
