Tianjin Commission of Commerce & Devott Jointly Publish “The Investigation Report of Beijing Information & Technology Service and Outsourcing Industry Transformation Situation”
Source: Chnsourcing.com.cn View: 296 Date: 2015-06-09

In order to undertake the transfer work of Beijing information & technology and service outsourcing company, to formulate investment solution scientifically, Tianjin Commission of Commerce and Devott jointly launched a specific investigation on Beijing information & technology enterprises and hundreds of service outsourcing enterprises. This activity has given out more than 1,000 questionnaires and taken 150 effective questionnaires back from information & technology and service outsourcing enterprises, which covering cloud computing, big data, mobile internet, e-commerce, creative culture, share service center etc. as well as collecting other information on basic information of enterprises, intention of moving outside, reason of moving outside, standard of cities for moving outside, impress on Tianjin society & economy, cognition on Tianjin industry, opinions & suggestions on Tianjin policies. This report has been made via repeated analysis and research.

A.      The main characteristics of moving outward from Beijing information & technology and service outsourcing enterprises.

a)       The big enterprises in emerging areas have clear intention to move outward

There are 14 companies in 150 enterprises surveyed that have more than 100 million RMB revenue from main businesses; 8 listed enterprises, 17 companies whose headquarters located in Beijing; 24 companies that have clear intention and strategy to move outward accounting for 22.8% in all companies surveyed. 41.67% of 24 companies start businesses of ITO and big data; while 33.33% start businesses of BPO and mobile internet.

b)       Enterprise usually adopt traditional way to move outward

5 enterprises that are parts of 24 companies having intention to move outward plan to fully move outward with half year or a year; 12 enterprises want to finish moving outward within 1-2 years; other 7 companies will implement moving outward strategy within 3 or longer years. The percentages of 150 enterprises surveyed choose to develop delivery center, R & D center, operation center, data center and sale center are 40%, 37.14%, 34.29%, 31.43% and 31.43% respectively. Only 4 enterprises plan to move their headquarters outward accounting for 0.038% of all surveyed companies.

c)       Talent, market and supporting environment have become core elements for moving outward.

The questionnaires show that “HR guarantees”, “Market integration & development” and “Office & living environment” have become the top 3 considering elements for companies moving outward, accounting for 65.93%, 57.14% and 40.66% respectively. There are 34.07% companies seeing “HR guarantees” as the first considering element; 20.88% companies seeing “Market integration & development” and “Office & living environment” as the first considering element. However, there are 33% companies firstly considering “availability of local talent”; 17% companies firstly considering “local comprehensive operating costs”. The percentages of companies that firstly consider “degree of supporting environment for local industry” and “the preferential policies and government support” are 14% respectively.

B.      The advantages and main areas of Tianjin for undertaking Beijing information & technology and service outsourcing enterprises transformation

a)       Tianjin has become one of moving outward destinations firstly chosen by Beijing companies.

The information from 150 Beijing enterprises that have moving outward intention shows that there are 45.16% companies willing to choose Tianjin Binhai New District, Tianjin Central District and Wuqing District as destinations; 58.06% companies willing to choose suburban Beijing; only 3% companies willing to choose Heibei province. Therefore, Tianjin has become one of destinations which is mostly chosen and firstly chosen by Beijing enterprises moving outward, only behind suburban Beijing.

b)       Beijing enterprises have higher evaluation for the whole impress of Tianjin and base & environment of service outsourcing industry

There are 95 companies that included in 105 surveyed companies having feedback of the survey “The Whole Impress for Tianjin”; and 15% companies evaluate “very good”, 57% companies evaluate “good”, only 26% companies show “common”. However less than 2%companies show their impress for Tianjin “bad” “worse” or “no idea”. 55% companies in 95 feedback enterprise think that Tianjin provides better information & technology and service outsourcing industrial development and industrial environment; only 5% companies have evaluated “worse” or “no idea”.

c)       Beijing enterprises feel satisfy with such advantages such as location transportation, policy supporting and comprehensive operating costs in Tianjin

66.67% companies in 93 feedback enterprises believe that “location and transportation” in Tianjin is the biggest advantage to undertake Beijing information & technology and service outsourcing enterprises moving outward, and more than 49.46% companies firstly consider “location and transportation”. 45.16% enterprises believe that “industry policy and government support” is the secondly biggest advantage and attracting reason in Tianjin. Additional, compared with Beijing, 33.33% Beijing enterprises believe that comprehensive operating costs is another big advantage in Tianjin.

d)       The Central District, Binhai New District and Wuqing District have become three main undertaking areas in Tianjin

In the feedback from companies that choose Tianjin, 61.33% companies choose Binhai New District and companies take Tianjin as firstly chosen destination for moving outward accounting for 38.67%. There are 49.33% companies choosing the Central District; the percentage of companies that will choose the Central District as first destination for moving outward is 46.67% high than in Binhai New District. More than 90% of enterprises that chooses the Central District sees the part as firstly chosen destination in Tianjin for moving outward. And there are 21.33%, 8% and 6.67% companies choosing Wuqing District, Beichen District and Xiqing District respectively. Nearly 10% companies see Wuqing District as firstly chosen destination in Tianjin for moving outward; and percentages of companies firstly choose Beichen District and Xiqing District are only less than 5% respectively.

e)       The Branches from ITO, BPO and Cloud Computing Big Enterprises are Mainly Undertaking Areas for Tianjin

59% enterprises in 17 enterprises that have intention to move outward Tianjin plan to implement within 2 years; and there are 29%, 35% and 18% companies mainly doing ITO, BPO and Cloud Computing respectively. 88% enterprises chose to migrate part of function, to set up branch institutions and chose traditional way of non whole migration via mergers and acquisitions. Only less than 10% enterprises chose to wholly migrate or to migrate headquarter. The 90% corporate functions undertaken by Tianjin are operation center, delivery center, R & D center, data center and sale center.

C.      The Restricting Factors for Tianjin to Undertake Beijing Information & Technology and Service Outsourcing Companies Transformation

The survey shows that the moving outward intention from Beijing information & technology and service outsourcing company has become more and more obvious. Tianjin has professional and good conditions to undertake Beijing enterprise with advantages of location, transportation and cost. However there are some gaps between Tianjin and Beijing in applicable talent, industrial environment, industrial avocation & promotion and opportunities from local market that influence the moving outward of Beijing enterprise more or less.

a)       There are some defects in human resources structure

Beijing enterprises pay more attention on industrial applicability of talent and services about talent employment, introduction and location, not simply on teaching & training resources and number of graduates. The comprehensive ability and professional quality of professional talent in Tianjin are relatively lower than in Beijing; and Tianjin also lacks of high level project managers and technology talent. There is also big gap between Tianjin and Beijing in talent policy and services. The weak abilities of science & technology innovation and abilities of new technology development & promotion also heavily restrict Tianjin for undertaking Beijing enterprises.

b)       Unperfect whole industrial environment

There are 40% Beijing enterprises that believe industrial base and environment of Tianjin information & technology and service outsourcing is not perfect. Many companies think that there is a big gap between Tianjin and Beijing in industrial element and environment, especially in some aspects including service industry level, resources and comprehensive environment for service industry. These are defects of Tianjin.

c)       Tianjin can’t provide fully advocating and promotion for industrial policies.

Beijing enterprises lack of knowledge about industrial development situation and policy in Tianjin. Only 6% of 97 enterprises said that they know about Tianjin outsourcing policies; 34% companies said know a little; however, more than 60% companies have no idea or lack of understanding.

d)       Local outsourcing business in Tianjin is still traditional.

Although manufacturing and service industry in Tianjin rapidly develops in Beijing & Tianjin & Hebei, local outsourcing business in Tianjin is still traditional. Nearly half of Beijing enterprises believe that less market opportunities in Tianjin is the key element to influence companies move outsward.

D.      The Suggestions on Tianjin Speeding up Undertaking Beijing Information & Technology and Service Outsourcing Enterprises Moving outward

a)       From top to bottom, complementary advantages, to promote Beijing moving outward enterprises locate in Tianjin in order

It is suggested that to set up promotion team for special work that coordinates each relative functional department and each county to make the overall planning, promotes implementation of industrial policies, park construction and investment & promotion. To construct and perfect co-ordination mechanism of integration of Beijing & Tianjin & Hebei, to connect some government departments between Beijing and Tianjin such as Municipal (county) Commission of Economy & Information Technology, Municipal (county) Commission of Commerce and Municipal (county) Science & Technology Commission, to promote orderly docking and transformation for Beijing enterprises from top to the bottom. To construct communication mechanism between professional institutions/parks and service outsourcing enterprises such as service outsourcing parks, service outsourcing associations, software associations and Zhongguancun; to jointly organize some activities like topic forum and enterprise communications; to fully play the function from intermediary organizations including industrial alliance, industrial associations and park services. To do well communications & coordination mechanism and relative docking works with these organizations represented by CITSA, BASS, BSIA, Beijing Zhongguancun Industrial Park.

b)       To highlight key points, to wholly promote, to advocate and promote Tianjin industry development plan and environment

It is suggested that to advocate the main areas and main enterprises, to wholly promote and show industrial base & plan & environment in Tianjin and advantages from talent & cost & policy interested by moving outward enterprises. To deeply research development features and special demands of enterprises and characteristics of information channels from industrial areas such as ITO, BPO, Cloud Computing that most probably transform into Tianjin. To make advocating topic and content for investment elements considered by enterprises location, to mainly highlight introduction of industrial talent & supporting policy & potential market mainly interested by moving outward enterprises; to show other development elements such as industrial base & supporting environment & cost interested by enterprises via photos and words. To reach the final goal of attracting targeted enterprises transform into Tianjin. The whole promotion work can be divided into three parts: before implementation, implementation and after implementation. To fully do outside promotion of news, information and internet before implementation; to do well special and effective investment design; to do well tracking and implementation of intentioned projects with scaled investment as marks.

c)       To connect point and surface, to collocate high and low, to invest with steps & stages and multi-way

It is suggested that to mainly do investment for big and middle enterprises that has intention and plan to move outward. To connect fixed investment & whole promotion, high-level visits & working visit, “going outside” & “coming in”. To make multi communications with enterprises face to face via interview and invitation; to clear the development demands and transformation conditions of enterprises then to make professional location solutions and to promote these enterprises locate in Tianjin. To make list of Beijing investment enterprises according to some areas such as ITO, BPO, Cloud Computing that are segmentations most to have opportunity; to clear contact information of enterprise core decision makers and key connect person, enterprises development situation, development core element and special demands; to perfect enterprise database; to classify enterprises from database according to their moving outward intention degree; to dynamically track process of enterprise moving outward; to quickly feedback and promote investment. To host investment fairs, road shows, enterprise visits, enterprise survey, topic meeting, internet investment and other activities according to different topic from hottest industry dynamics and hottest conferences via reasonable investment ways; to construct three-dimensional investment promotion and capital introduction system. Meanwhile, to fully understand enterprise transformation intention and demands via organization institutions and third party platforms, to wholly hold potential enterprises and investment, to build long term & stable & relative standard and special investment mechanism. To provide standardized investment information flow for subsequent enterprises those enter into Tianjin; to build good base for continuously promoting the undertaking the headquarters of Beijing enterprises and new merging companies.

Devott Publications
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