On the afternoon of April 21, 2017, organizedby China Council for International Investment Promotion (CCIIP), Release ofReport on Ten-Year Development of China’s Service Outsourcing Industry &Promotion On China’s Service Outsourcing Leading and Growing Service Providerswas held in Beijing. Former vice minister of MOFCOM Mrs Ma Xiuhong, presidentof CCIIP Mr. Miao Gengshu were invited to attend the conference.
With the great support of all parties, CCIIPand China Service Outsourcing Research Center organized the research group to carryout researches in the cities of Jiangsu, Tianjin, Beijing, Shanghai and Dalianetc., and wrote the Report on Ten-Year Development of China’s ServiceOutsourcing Industry (2006-2015). With the theme of “The path to intelligenceand digitalization”, the report interpreted the achievements of China’s serviceoutsourcing industry made in the past ten years, analyzed the developing trendsof global service outsourcing and strategic opportunities of China’s serviceoutsourcing industry, predicted the developing prospects of China’s serviceoutsourcing industry in the future ten years and put forward some policyadvices to promote the rapid and healthy development of service outsourcingindustry in the new times.
The report pointed out that the past tenyears was the starting stage of China’s service outsourcing industry. Over thepast ten years, Chinese government seized the opportunity of informationtechnological revolution, and listed the developing of service outsourcing as theeleventh Five-year plan and Twelfth Five-year plan successively. In 2006, MOFCOMlaunched the project of “Thousand-Hundred-Ten” with the Ministry of Science andTechnology and the Ministry of Industry and Information Technology of People’sRepublic of China, opening the chapter of promoting the development of serviceoutsourcing. Since 2009, the State Council formulated a series of policies ofencouraging the development of service outsourcing and promoted the emergenceand growing of China’s service outsourcing industry.
From 2006 to 2016, China’s serviceoutsourcing enterprises extended from over 500 to 39277; the executed value ofservice outsourcing increased 51 times from 1.384 billion dollars to 70.41dollars (488.45 billion RMB); on-shore service outsourcing started fromscratch. In 2006, the executed value reached 36.05 billion dollars (250.09billion RMB); employees of service outsourcing industry soared to 8557 thousandfrom less than 60 thousand, among which employees with bachelor or higherdegree accounting to 65%.
The report pointed out that the worldeconomy is in the position of important transformation period. With the newround of technological revolution appearing, the new industrial revolution waveswept across the globe, the real economy such as the manufacturing industry andthe related service industry have to go through transformation and upgrading.Facing the developing trends of digitalization innovation in the globe, theChinese government paid high attention. Since the beginning of the 13thFive-year plan, the Central Committee of the Communist Party of China and theState Council made relevant policies to implement the innovation-drivenstrategy, which provide policy environment and market atmosphere for thedevelopment of service outsourcing industry in the next stage.
The report pointed out that the at present,the internal drive of China’s service outsourcing industry has beenestablished, but not strong enough, especially many challenges are stillexisted in the aspects of definition of service outsourcing industry andbusiness scope, the innovation of encouraging policies, the full implementationof national current policies, the improvement of operating environment ofservice outsourcing industry, promotion of international competitiveness,talent cultivation and introduction etc.
The report advised in the background ofrevolution, we need to analyze the current situation and faced problems, payhigh attention to the importance and urgency of listing service outsourcingindustry as the national strategic emerging industry, and take a new round ofencouraging policies to promote the new growth of service outsourcing industryin the new times.
The report predicted that with the rightpolicies, China is fully capable of surpassing India and becoming the largestoutsourcing destination in the future ten years. In 2025, the executed value ofChina’s service outsourcing contracts may be over 3 trillion RMB (450 billiondollars); the employees of service outsourcing industry will be more than 20million, of which those with higher degrees are nearly 15 million, accountingfor 70%; enterprises with more than 10 thousand employees and over 100 milliondollars of executed value are about 50; service outsourcing enterprises withmore than 100 thousand employees and over 10 billion dollars of executed valueare expected to appear.
In the future ten years, China’s serviceoutsourcing industry will enter the “golden developing period” and become theglobal service outsourcing center with the sourcing and outsourcing growingsimultaneously and international and domestic two markets developingharmoniously.