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China undertakes 30 percent of the global offshore service outsourcing market

(People's Daily Online)    17:00, November 12, 2015
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China undertakes 30 percent of the global offshore service outsourcing market

The executed contract value of the offshore service outsourcing served by China reached 35.7 billion dollars from January to August, 2015.

The executed contract value of offshore services outsourced to China saw an increase from 4.7 billion dollars to 55.9 billion dollars from 2008 to 2014, meaning China’s share of the global market for offshore service outsourcing grew from 7.7 percent to nearly 30 percent.

Accelerated development in offshore service outsourcing will encourage people to start their own businesses.

For instance, 125,000 people work in 1,448 service outsourcing enterprises including 344 offshore outsourcing enterprises in central China's Henan province. The contract value and executed contract value of offshore service outsourcing in Henan province reached 650 million dollars and 550 million dollars respectively.

China's offshore service outsourcing is confronted with new challenges such as rising labor costs, a decreasing demographic dividend and competition for a say over international trade rules across the world, according to Gu Yongjiang, former deputy minister of China's Ministry of Foreign Trade and Economic Cooperation.

"China sees downward pressure on GDP growth and feels this pressure on import and export trade in particular,” according to Yao Jingyuan, senior researcher at the Counselors' Office of China's State Council. Yao added that China should rely on innovation to drive the economic growth.

China and the countries along the Belt and Road share strong economic complementarities and these countries are important markets for China's offshore service outsourcing, according to Gu.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Ma Xiaochun,Bianji)

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