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Nanjing's service outsourcing industry emerges as new force
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14:27, June 23, 2009

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Five national-level service outsourcing demonstration zones, over 300 service outsourcing enterprises, a gross sum of 510 million USD generated from service outsourcing in 2008 … With a series of inspiring figures, Nanjing is showing the outside world its service outsourcing industry's sudden emergence as a new force.

Thanks to its abundant scientific and educational resources, Nanjing enjoys a huge advantage in developing service outsourcing.

The city government has put emphasis on the development of service outsourcing industry and offers policy support. In 2008, the government clearly stipulated that no less than 3 billion yuan gross investment will be injected between 2008 and 2010 for the construction of international service outsourcing infrastructure and various related preferential policies.

Nanjing has already set up various development platforms: It has established the Nanjing International Association of Service Outsourcing Enterprises to promote the development of its service outsourcing industry; it supports the construction of an overseas orders handling center and encourages service outsourcing enterprises to establish an overseas orders handling alliance; it relies on its colleges, universities and professional research institutions to do research in the field of development theories and applications for the service outsourcing industry, with a view to guiding the development of the entire city's service outsourcing industry.

Investment attraction activities related to service outsourcing peaked in Nanjing in 2008, and multiple promotion activities were successively held in Japan, South Korea, the UK, Germany, the US and other countries. As a result, a large number of well-known service outsourcing companies have selected Nanjing as their investment destination.

Satyam Computer Services of India has put its Nanjing global orders handling center into formal operation, and begun to accept orders from many Fortune Global 500 enterprises such as GE, IBM and Microsoft. Foxconn of Taiwan has invested in Nanjing to establish two branches, Foxconn Software and Foxconn Communication, generating over 10 million USD in service outsourcing contracts in the first quarter this year.

Up to now, 330 service outsourcing enterprises have emerged in Nanjing. Many well-known domestic and overseas enterprises such as ZTE Corporation, Huawei Technologies Co., Ltd., Motorola and Alcatel-Lucent have set up either a delivery center or a research & development center in Nanjing. World-renowned enterprises including Microsoft, HP, Intel, IBM and others have set up service outsourcing related cooperation projects in Nanjing.

By the end of 2008, there were 45,000 people working in service outsourcing enterprises across the city, which generated a total value of 510 million USD in 2008. This accounts for over 10 percent of China's entire service outsourcing businesses.

By People's Daily Online


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