Devott Insights: Weak Basis of Service Outsourcing Industrial Elements in Second/Third-tier Cities in China - Information Technology Brings Opportunities
Source: Chnsourcing.com.cn View: 236 Date: 2015-09-14

 

From the aspect of industrial development elements, the second/third-tier cities have relatively weak service outsourcing industrial basis. First of all, the second/third-tier cities have not formed enough influence in industry then they can’t become alternative locations for enterprises to choose. Secondly, second/third-tier cities haven’t has perfect macro infrastructure and environment concentrated on professional industrial carrier. The last but not the least, second/third-tier cities need to continually develop bulk supply of small & medium-end talents and availability of medium & high-end talents. Compared with perfect industrial environment in first-tier cities, second/third-tier cities have relatively weak advantages and need to face a series of development challenges and competitions from firstly developed cities.

However, different from manufacturing, the upstream and downstream of service outsourcing industrial chain provide services. Because of its information technology with high carrying degree, with rapid development of information technology and internet, the transaction of service products can’t be limited and influenced by space distance, can be served and delivered between different places via IT and network telecommunication. Meanwhile, with wide popularity of emerging technologies including big data, internet of things, mobile internet and cloud computing, the transaction of service outsourcing will be based on cloud that greatly makes convenient way for enterprises; and at the same time reduces cost. Therefore, cloud services bring opportunities of transformation and development for second/third-tier cities.

This post is a personal or group view of Research and Advisory members and don't necessarily represent Devott's positions, strategies or opinions.

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