The Service Outsourcing Situation in Hangzhou during the Period from Jan to May
Source: China Outsourcing Magazine View: 290 Date: 2015-07-07

The contract amount of service outsourcing undertook by Hangzhou is 1.4883288 billion USD during the period from Jan. to May. The implementation amount of service outsourcing contract is 2.20253408 billion USD; among them there are 1.1682445 billion USD of offshore service outsourcing contract; 1.7349905 billion USD of implementation contract which increasing 23.16 % year-on-year.

According to statistics from main service outsourcing institutions in Hangzhou, there are 83 periods of courses in the first five months and training 2916 people.

The main characteristics:

1.       Service outsourcing businesses can’t catch up with schedule. The implementation amount of offshore service outsourcing contract is 1.7349905 billion USD accomplishing 38.56% of total schedule in whole year, which differ 3.11% between coverage percentage of annual program. The gap money is 140 million USD. As important gathering area of service outsourcing businesses in Hangzhou, Hi-tech (Binjiang) Area and Xihu District have not good result, which is main reason why offshore service outsourcing implementation amount can’t be finished as expected.

2.       ITO businesses rapidly developed. The implementation amount of ITO offshore contract is 1.276 billion USD which increasing 52.39% year-on-year and accounting for 73.52% of total implementation amount. It still keeps leading position. ITO offshore businesses mainly gather in software R & D outsourcing and information system operation & maintenance outsourcing.

3.       Leading enterprises drive innovation. Service outsourcing industry in Hangzhou pays attention to strengthen innovative ability, to improve service quality, to gather a series of famous service outsourcing brands and enterprises with features, international competitive abilities. For example, HIKVISON has advanced core technology in whole industry that has been awarded by Jinping Xi, Chairman of Cina. There are 18 enterprises those have more than 10 million USD implementation value of offshore service outsourcing contract; the offshore implementation amount is 1.377 billion USD which accounting for 79.36% of total amount in Hangzhou.

4.       USA, Japan and EU are main markets to buy international services. The implementation amount of offshore service outsourcing in Hangzhou undertaken from USA, Japan and EU are 659 million USD, 278 million USD and 251 million USD representatively; the total value is 1.188 billion USD which increasing 45% year-on-year and accounting 68.49% of total implementation amount. Those are main outsource markets undertaken by Hangzhou.

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