Model Cities



Geographic Background

Guangzhou has superior geographical and regional advantages. In terms of distance, Guangzhou is located in the geometrical center of the economic circle of Southeast Asia and therefore it is equidistant from Japan and Southeast Asian countries within a flight voyage of 3 to 4 hours in general.

In terms of geographical location, Guangzhou is an open coastal city neighboring Hong Kong and Macao, and the economic, political, and cultural center, and also the commercial center, which combines manufacturing, transportation, commerce, finance, information, education and human resources as a whole. It is located in the center of the Pearl River Delta, one of the most economically dynamic and flourishing areas in China. Guangzhou exerts an impact on China, East Asia and even the world with its economic capacity and radiation.

Economic Background

Since China launched the reform and opening-up campaigns more than 20 years ago, Guangzhou's economy has been expanding at an average annual rate of 13%. Today, Guangzhou ranks third among major Chinese cities in terms of comprehensive economic strength. The city's industrial and agricultural production has been increasing constantly and foreign trade has been growing by leaps and bounds. Guangzhou is a central city in China's economic growth with a solid foundation in industry, a flourishing tertiary industry sector and balanced economic development.

Guangzhou Service Outsourcing Industry Development


During the Eleventh Five-year Plan period, Guangzhou shall leverage its industrial and talent advantages to actively undertake information technology outsourcing (ITO), business process outsourcing (BPO), and knowledge process outsourcing (KPO) in key areas including software development, telecommunication service, data processing, background service, network game animation product deign and production, consigned pharmacy R&D and processing, third party test, industrial design, financial service, modern logistics, exhibition service, and human resource management.

The objectives for the development of service outsourcing industry of Guangzhou in the Eleventh Five-year Plan period include:

Establish 8 service outsourcing clusters with good scale and unique characteristics;

Attract over 30 multinational service outsourcing companies to invest in Guangzhou;

Foster 100 service outsourcing enterprises with international certification, including two enterprises with an annual revenue of over one billion yuan and two enterprises with over 5,000 employees.

Cultivate and attract 60,000 specialized personnel for the service outsourcing industry;

By 2010, the total export value of service outsourcing business shall reach four times of that in 2005.

Political Support:

In March 2008, Guangzhou issued Opinions on Accelerating the Development of Service Outsourcing in Guangzhou and Administrative Measures for China Outsourcing Base Guangzhou Exemplary Zone. Guangzhou Municipal Government has decided to invest one billion yuan to promote the development of information technology outsourcing (ITO) and business process outsourcing (BPO) during the Eleventh Five-year Plan period. The special fund for promoting Guagnzhou's service outsourcing industry with an annual contribution of 100 million yuan has been set up to encourage service outsourcing investment, support talent introduction and training, and strengthen exemplary zone construction; the special fund for headquarters and regional headquarters with an annual contribution of 20 million yuan has been established to promote headquarters development; and the special fund for financial industry has also been set up with an annual contribution of 50 million yuan from 2005 on to support the global and regional financial headquarters in Guangzhou.

To further promote the development level of service industry, accelerate the transition of economic and social development model, and promote the construction of a modern metropolitan, Guangzhou has issued a series of documents to build an excellent policy environment for service outsourcing industry, including Notice on Issuing the Eleventh Five-year Plan for the Modern Service Industry of Guangzhou (Suifu [2006] 24), Opinions on Accelerating the Development of Service Industry (Suifu [2005]51), Measures of Guangzhou for Certifying High & New-tech Results Transferring Projects (Suifu [1999]40), Several Regulations of Guangzhou for Promoting Venture Capital Industry (Municipal Government Order [2001] 15), Regulations of Guangzhou for Encouraging Overseas China's Graduates to Work in Guangzhou (Municipal Government Order [1999]10), Measures for the Allocation and Management of Guangzhou Science & Technology Fund, Notice on Forwarding the Opinions of Guangzhou Development and Reform Commission on Strongly Promoting Guangzhou's Financial Industry (Suifuban [2005]16), Notice on Forwarding the Opinions of Guangzhou Foreign Trade & Economic Bureau and Other Departments on Fulfilling the Strategy of Promoting Trade with Science & Technology (Suifuban [2004]29), Notice on Issuing the Regulations for Encouraging Foreign Fund to Establish Headquarters and Regional Headquarters in Guangzhou (Suifuban [2006] 34), and Administrative Measures for the Special Fund of Guangzhou for "Promoting Trade with Science & Technology (Suiwaijingmaoji [2004]23).

To support the development software outsourcing and relevant industries, Guangzhou has issued various policies and regulations, including Notice on Issuing the Guiding Opinions of Guangzhou on Accelarting the Development of Software Industry (Suifu [1999]79), Notice on Issuing Several Regulations on Further Supporting the Development of Software and Animation Industry (Suifu [2006]44), Opinions on Accelerating the Development of Software and Animation Industry (Suifu [2006]45), Several Regulations for Encouraging the Development of Integrated Circuit Industry in Guangzhou (Suifu [2001]42), Temporary Administrative Measures for Software Export of Guangzhou (Suiwaijingmaoji [2002]20), and Notice on Issuing the Administrative Measures for Certifying Guangzhou Integrated Circuit Enterprises and IC Products (Suijing [2003]119), and established a complete policy system and an excellent policy environment for the development of software industry.

Devott Publications
The Selection of the TOP Global Outsourcing Destinations – China TOP 15 (TGOD China TOP 15) Ended and Its Rankings and Research Reports are Now Available Worldwide