Guangzhou targets services outsourcing role

PUBLISHED : Saturday, 01 December, 2007, 12:00am
UPDATED : Saturday, 01 December, 2007, 12:00am

Guangzhou city is striving to become a services outsourcing base to promote services for hi-tech industries and help in their development, city officials said.

'We have filed an application with the Ministry of Commerce to be awarded national outsourcing city status and expect to receive approval soon,' Tang Hanghao, Guangzhou municipal government vice-secretary-general, said yesterday.

Services outsourcing refers to the practice of companies hiring professionals to handle basic, non-essential information technology business functions and IT-based procedures so they can focus on their core business activities.

Mr Tang said developing services outsourcing industries relied on talent so the city planned to invest more than 100 million yuan on personnel training and supporting policies.

The Guangzhou Economic and Technological Development Zone, Guangzhou New and Hi-tech Industrial Development Zone and Nansha IT Park have been earmarked as districts for outsourcing, he said.

To date, the ministries of commerce, information industry and science and technology have approved 11 cities as outsourcing bases. These are Shanghai, Nanjing, Xian, Chengdu, Shenzhen, Dalian, Tianjin, Wuhan, Jinan, Hangzhou and Suzhou.

The central government is campaigning to get 100 multinationals to shift their outsourcing services to the mainland and is fostering the development of 1,000 large and medium-sized outsourcing enterprises, senior commerce officials said.

The national goal is a fourfold rise in outsourcing export volume by 2010 from US$900 million in 2005.

Support for the bases includes interest rebates, research and development funding, personnel training, corporate qualification certification, export credit loans, credit insurance, commercial information and protection of intellectual rights.


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