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Jiangsu's outsourcing industry flourishing

By Miao Jie and Yang Cheng (chinadaily.com.cn)
Updated: 2010-05-26 09:28

BEIJING -- Global outsourcing giants will flock to Nanjing, capital of Jiangsu province, to attend the third China International Service Outsourcing Cooperation Conference on June 11.

Some 80 overseas companies engaged in outsourcing businesses for software, animation, design and pharmaceutical research and development have registered to join the event, 30 percent more than the last session in 2009.

According to Zhao Jin, vice director of Jiangsu Commerce Department, the outsourcing event has high standards for foreign buyers: The outsourcing contract value of their projects should stand above $8 million each, and delegates to the events should be senior executives.

"Although we raise the standards for foreign buyers, we still see their enthusiasm to take part," Zhao said.

Some high-profile forums will be held during the conference, and a number of renowned industry professionals from big-name companies will share their insights.

Those include Adreas Heckmann, global vice president of SAP; Debajyoti Das, vice president of Capegimini, world's leading IT outsourcing management enterprise; Sue Tang, strategic outsourcing vice president of IBM; and Kirk Williams, vice president of service department at Dell.

Some 300 domestic companies engaged in receiving outsourcing projects will join the event, and most of them are from Jiangsu.

Zhao noted that the province has offered preferential policies to boost the service outsourcing sector, in a bid to echo the nation's decision to upgrade the industry structure of the Yangtze River Delta.

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During the first quarter of this year, the agreement contract value hit $1.87 billion, up by 33.8 percent year-on-year.

"More worth mentioning is that the sector saw skyrocketing growth last year, despite the bad impact brought by the financial crisis," Zhao said.

The contract value of projects completed in the province reached $2.8 billion last year, a surge of 177 percent from the previous year.

Zhao expects the province to sustain last year's stunning growth.

Currently, most of Jiangsu's leading outsourcing companies are concentrating on the industry congress' host city Nanjing.

According to Wang Shouwen, vice mayor of Nanjing, five national-level model industry bases and two provincial-level industry bases have been established in the city.

"The city has gained half of the orders of the province's industry, and the IT service accounts for 60 percent of the total industry volume," Wang said.