The Basic Situation of Service Outsourcing in Hangzhou during the Period from Jan to Jun
Source: China Sourcing Magazine View: 269 Date: 2015-07-10

A)      The situation of service outsourcing business

The value of service outsourcing contract undertaken by Hangzhou is 2.442519 billion USD during the period from Jan to Jun, the implementation amount of service outsourcing contract is 2.7384742 billion USD. Among them, the value of offshore service outsourcing contract is 1.9146347 billion USD; the implementation amount is 2.2632767 billion USD which finishes 50.30% of the planed total annual implementation amount and declines 3.17% year-on-year.

There are 154 service outsourcing enterprises those have more than 1 million USD of offshore implementation amount in the first half of this year, the total amount of offshore implementation is 2.2212988 billion USD, which accounting 98.15% of offshore implementation amount in Hangzhou. Among them, there are 21 service outsourcing enterprises those have more than 10 million USD of offshore implementation amount, the total amount of offshore implementation is 1.804225 billion USD, which accounting for 79.72% of total amount in Hangzhou.

In offshore implementation amount of the first six months, the implementation amount of ITO contract undertaken by Hangzhou is 1.5023426 billion USD, which accounting for 66.38% of total implementation amount. The implementation value of BOP contract is 31.3453 million USD, which accounting for 1.38% of total implementation mount. The other value of implementation contract is 729.5889 million USD, which accounting for 32.24% of total implementation amount.

B)      The training situation of service outsourcing talent

According to statistics from important service outsourcing training institutions in Hangzhou, there are 102 periods of class from Jan to Jun, training 3597 people. From training scale and analysis of effects, these companies provide good training in Jun are Tarena Computer Co., Ltd, Hangzhou Yuzhiying Service Outsourcing Co., Ltd, Hangzhou Dongzhong Talent Development Co., Ltd., Hangzhou Huiwen Education Consulting Co., Ltd. and etc. The training projects cover Java training, C++ training, Japanese, C language, comprehensive knowledge of service outsourcing and embedded system for C+E international software engineers.

Operation features

A)      Service outsourcing has rapid developed and accomplished “ half of mission in half of time”

Hangzhou will continuously increase power to make target at the beginning of this year; and government sends order and mission in different stage. In the first half of this year, especially in June, Bureau of Commerce in Hangzhou has strengthened supervision and examination for each district, town, development area to finish mission and encouraged enterprises actively report statistics data via door-to-door service, advocating policies and etc.. The implementation amount of service outsourcing offshore contract is 2.632767 billion USD in the first half of this year, which finishing 50.30% of whole year’s plan which accomplishes “half of mission in half of time”.

B)      The offshore implementation amount declines year-on-year.

The implementation amount of offshore service outsourcing contract undertaken by Hangzhou is 2.2632767 billion USD during the period of Jan to Jun. Because of slow recovery of international economy totally, these main outsource markets such as USA, Japan, EU are relative weak; the operation businesses of traditional outsource enterprises also decline; outsource businesses reduce, which declines 3.17% of implementation amount of offshore service outsourcing contract in Hangzhou.

C)      Industrial area gathers

In service outsourcing businesses in Hangzhou, telecommunication service, internet of things R & D and financial service outsourcing have specific features. The implementation amount of telecommunication service and internet of things R & D outsourcing offshore is 844.9739 million USD, which accounting 37.33% of total implementation value in Hangzhou; the implementation amount of financial service outsourcing is 149.5679 million USD, which accounting for 6.61% of total implementation value in Hangzhou.

D)      Offshore market gathers with higher business level

In offshore service outsourcing contracts undertaken by Hangzhou during the period of Jan to Jun, the offshore implementation value from USA is 802.3109 million USD, which accounting for 35.45% of total amount in Hangzhou; the offshore implementation value from Japan is 363.2954 million USD, which accounting for 16.05% of total amount in Hangzhou; the offshore implementation value from EU is 279.8687 million USD, which accounting for 12.37% of total amount in Hangzhou. The all of implementation value above accounts for 63.87% of total amount in Hangzhou which have become main international markets undertaken by Hangzhou.

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