Model Cities



Geographic Background:

Hangzhou, the capital of Zhejiang Province, is the provincial center in economy, culture, science and education. It is a famous city in history and culture and also an important national tourist city with the beautiful scenery. Located at the southern wing of the Yangtze River Delta, the west end of Hangzhou Bay, the lower reaches of Qiantang River and the southern end of the Grand Canal (Beijing-Hangzhou), it is one of the most impor tant central cities in the southern wing of the Yangtze River Delta and a hub of transportation in southeast China. The geographic position of the city proper is latitude 30°16' nor th and longitude 120°12' east. Hangzhou owns the natural environment integrating rivers, lakes and hills. The hilly area of the city accounts for 65.6% of the total, which concentrate in the west, middle and south, the plain 26.4%, which scatter in northeast, rivers, lakes, ponds and reservoirs 8.0%. The world's longest canal known as the Great Canal winds through the city as well as the Qiantang River which is noted for the magnificent view of tidal rush. Hangzhou has a subtropical monsoon climate with four distinct seasons. It is warm and humid with sufficient sunshine and plentiful rainfall. In 2009, its average annual temperature is 17.8℃, the average relative humidity 71%, the annual rainfall 1,453.9 millimeters and the annual sunshine time 1,709.9 hours.

Economic Background:

In 2009, the mos t dif f icul t year of the economic development since the new century, Hangzhou based on the guidance of scientific concept of development, responded to the international financial crisis actively, and remarkable results achieved.The Gross Domestic Product (GDP) of Hangzhou broke through the threshold of 500 billion yuan, reaching 509.866 billion yuan, up by 10.0% at comparable price over the previous year, with an annual economic growth rate of over 10% maintained for consecutive 19 years. The GDP per capita calculated by registered residents was more than 10,000 US dollars at the 2009 average exchange rate published by the country.

Hangzhou has continued to a new level in its financial income. In 2009, the total fiscal revenue of 101.943 billion yuan was received, up 12.0% over the previous year, breaking through the threshold of 100 billion yuan, and the city's local fiscal revenue reached 52.079 billion yuan, up by 14.4%; the local expenditures totaled 49.04 billion yuan, up by 16.9%.

In 2009, Hangzhou's comprehensive economic strength continued to rank No. 2 ( af ter Guangzhou) among all provincial capitals, No. 3 (af ter Guangzhou and Shenzhen) among all sub-provincial cities and No. 8 of all large and medium sized cities of China. It won the title of "China Mainland Best Commercial City" by "Forbes" Magazine; it is listed as No.1 of 2009 Happiest Cities of China (Mainland), according to "Oriental Outlook" Xinhua News Agency; China's top ten creative cities and top ten dynamic cities. There are 81 civilian enterprises among the top 500 in China and Hangzhou has ranked first for 7 consecutive years; There were 38 companies among the 2009 competitiveness of China's largest 500 enterprise groups and Hangzhou has ranked first for 3 consecutive years; there were 21 enterprises among the top 500 Chinese enterprises, 56 enterprises among the 2009 Top 1,000 China's Largest Power Enterprise Group and Hangzhou all ranked first among Sub-provincial cities.

Hangzhou Service Outsourcing Development


In 2006, Hangzhou released a Three-year (2008 – 2010) Plan of service outsourcing and gave priority to software development outsourcing, financial service outsourcing, network and digital added-value service outsourcing, telegraphic added value and operation service outsourcing. Besides, Hangzhou will take active stance to contract offshoring outsourcing and expand the export of high-end service products. It has made a clear plan for the development of service outsourcing industry. First. By the end of 2010, the total volume of service outsourcing will have reached $1.924 billion with the total export of $1 billion. Second. By the end of 2010, about 50,000 college graduates will be employed. Over 50,000 people will work in the service outsourcing industry and 10 domestic and foreign companies will have established outsourcing companies in Hangzhou. Among those companies, 50 ones should have CMMI/CMM3 certificates or above, and 5 ones should have CMM5/CMMI5 certificates. Third. There will be one or two big companies with over 10,000 employees. 30,000 college students (including junior college students) will get training and 20,000 more job positions will be created.

Political Support:

In order to encourage the development of outsourcing industry, Hangzhou Government gives continuous policy support. Hangzhou government issued a series of policies, for example, "Opinions of the People's Government of Hangzhou Municipality on the Development of Service Outsourcing Industry", "Guidance of the People's Government of Hangzhou Municipality on the promotion of brand development", "Notice on the Standardization of the Process of Software Enterprise Authentification and Annual Audit", "Regulations on the Management of Specialized Fund on Service Outsourcing in Hangzhou (trial implementation)", "Regulations on the Establishment of Scientific Innovation Service Platform", "Temporary Measures on the Promotion of Financing Guarantee for Innovation-oriented Companies", "Opinions of the People's Government of Hangzhou Municipality on the development and Protection of Intellectual Property Rights" and "Opinions on the Introduction of High-positioning Talents". Those policies will promote the development of outsourcing industry to a large extent from various aspects such as specialized fund, enterprise authentification, market exploration, garden construction, talent training, export and property rights protection.

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