The development of service outsourcing in Hangzhou
Source:  View: 233 Date: 2014-07-22

January to June in 2014 in Hangzhou, the signing amount of service outsourcing contract was 4.5689196 billion USD with 2.4338578 billion USD of off-shore signing amount and the execution amount was 3.0338985 billion USD with 2.3351342 billion USD of off-shore execution amount, up 32.75 percent.

There were 185 outsourcing enterprises whose off-shore execution amount beyond 1 million USD   January to June with a total amount of 2.2588364 billion USD, making up 96.73 percent of the total off-shore execution amount in Hangzhou. There were 22 outsourcing enterprises whose off-shore execution amount beyond 10 million USD with a total amount of 1.7259013billion USD, making up 73.91 percent of the total off-shore execution amount in Hangzhou.

January to June, among the off-shore execution amount, the amount of ITO contract was 1.5790142 billion USD, making up 67.62 percent of the total amount. The amount of BPO contract was 57.3754 million USD, making up 2.46 percent of the total amount. For others such as KPO etc,the amount was 698.7446 million USD, making up 29.92percent of the total amount.

Features:

The outsourcing industry in Hangzhou achieved “the task was done half when the time went half”. The Hangzhou government carried out goals and divided the goals into tasks for the relevant departments. During the past six months, the Hangzhou Foreign Trade & Economic Cooperation Bureau reinforced the supervision of the districts and encouraged the companies to report the statistical data through spot services and policies analysis. In the past six months the total contract execution amount achieved 3.0338985 billion USD, up 48.88 percent, completing 59.49 percent of the whole project in 2014. The total off-shore service outsourcing contract execution amount was 2.3351342 billion USD, up 32.75 percent, completing 58.38 percent of the whole project. The contract execution amount and the off-shore execution amount of service outsourcing both achieved “the task was done half when the time went half”.

The leading companies developed greatly. In the past six months, There 22 enterprises whose contract execution amount of off-shore service outsourcing beyond 10 million USD with a total amount of 1.7259013 billion USD, making up 73.91 percent of the total amount of Hangzhou. There are 6 enterprises whose off-shore execution amount beyond 50 million USD.  H3C, HIK Vision, State Street Technology Co., Ltd., Nokia(Hangzhou), INSIGMA and other leading enterprises had an outstanding role in promoting the industry.

ITO took the dominant role. During the past six months, the percent of the ITO, KPO and BPO was 67.62, 29.92 and 2.46 each separately. ITO still stayed the leading place and it mainly consists of two parts: software research and development outsourcing and information system operation and maintain outsourcing.  

The trend of industrial aggregation was obvious. In the outsourcing industry in Hangzhou, the features of communication service, research of the Internet of things and financial services outsourcing were outstanding. During the past six months, the total off-shore execution amount of communication service, research of the Internet of things off-shore outsourcing was 834.7381 million USD, making up 35.75 percent of the whole amount. The total off-shore execution amount of financial services outsourcing was 131.7761 million USD, making up 5.64 percent of the whole amount.

America, Japan and EU were the main providers. During the past six months, the off-shore execution amounts   America, Japan and EU were 926.2769 million USD, 332.2818 million USD and 237.3736 million USD separately, making up 39.67 percent, 14.23percent and 10.17 percent separately of the total execution amount. The off-shore execution amount of the three markets took up 64.06 percent of the total amount in Hangzhou and America, Japan and EU were Hangzhou’s main providers.

 

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