Service Outsourcing in Nanjing Has Strong Driving Power
Source: www.comnews.cn View: 228 Date: 2015-10-10

 

"We provide service like ‘nanny’ for service outsourcing enterprises that means to grant whatever is requested by them and answer any questions from them. Only when we receive problems provided by enterprises, can we try our hard to solve for them”. “Some of high-end service outsourcing talent graduate from overseas, or they aren’t native speakers in Nanjing, who aren’t familiar with anything in Nanjing. Therefore, we shall put ourselves in to think for them and provide a good environment for them to start their businesses peacefully.”

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With narration from the director of commercial department in Nanjing, reporter has new understanding on high evaluation from directors from multi service outsourcing enterprises for entrepreneurship environment in Nanjing.

Nanjing is worthy of the name of service outsourcing city. Nanjing has gathered huge amount of giant enterprises in service industry, gathered many high-end service talent; it also like a powerful magnet attracts outsourcing orders from each place all over the world.

At the time of opening of the 8th China International Service Outsourcing Cooperation Conference, the director of commercial department of Nanjing introduces the important function and practical & efficient support from governmental departments in the process of rapid development of service outsourcing industry in Nanjing.

"The Eight-Word Policy” Promotes Development

In opinions of Tang Sulan, the director of Service & Trade Department of Bureau of Commerce in Nanjing, after ten-year’s development, service outsourcing industry of Nanjing has accomplished rapid growth in industrial scale, number of enterprises, employees from college graduates and other aspects; however, it also faces the critical moment of transformation and upgrading currently, and also need great promotion from government. “As the important content of service trade program, Nanjing always takes considerable development of service outsourcing as important gripper of foreign trade transformation and upgrading, and make contribution rounding with ‘eight-word policy’ including leading, coordination, promotion and service” said by Tang Sulan. “Service outsourcing involves each industry and also has many main market bodies; therefore, how to ensure and keep stable & healthy & orderly development after ten-year’s rapid development? That needs to fully play the function of governmental departments.”

The 8th China International Service Outsourcing Cooperation Conference hold in September 21st -25th, 2015 has been one of important “promotion” works provided by Municipal Government of Nanjing concentrating on transformation of service outsourcing industry.

The meaning of leading is to firstly make policy planning and to guide development direction for industry. “In recent years, Nanjing constantly revises and makes industrial policies perfectly mainly based on national documents and combined with practical situation of Nanjing. In 2015, we will publish ‘The 13th-Five Year’s Planning of Service Outsourcing in Nanjing’” said by Tang Sulan.

The meaning of coordination is that governmental department will strengthen advocating in work; and enterprises can fully understand national policies in the process of development. “The Bureau of Commerce of Nanjing has established main contact person system for service outsourcing main enterprises in Nanjing to timely and comprehensively understand requirements from enterprise as well as to let enterprises actively want them to solve problems when face troubles via many communication”

The meaning of promotion not only includes actively organizing local enterprises to attend each conference and to lead enterprises into main foreign markets with group lead by Bureau of Commerce; but also includes constructing good connection with overseas institutions, strengthening understand between local enterprise and foreign markets for each other and helping enterprises to achieve more orders. “Government provides platform to connect overseas governmental departments and institutions that can cooperate with enterprises in Nanjing then let enterprises have higher level of ‘going-outside’” said by Tang Sulan.

Practical Support

Under the situation of government fully and comprehensively playing functions and enterprises themselves hardworking, the development of service outsourcing industry in Nanjing has become serious. For example of Qinhuai district in Nanjing, during the period of the 12th – Five Year, the number of service outsourcing enterprises in this district mainly engaging with KPO has nearly increased ten times from 20+ to 200+; the number of service outsourcing personnel has increased near 20 times from more than 1500 people to 30,000 + people; the annual implementation amount of service outsourcing (onshore and offshore) has increased from 35 million USD to 1 billion USD (the expected value in 2015); and the amount of offshore outsourcing also has increased from 10 million USD to 300 million USD (the expected value in 2015), which nearly increasing 30 times. “Recently, Qihuai district is making ‘the 13th –Five Year’s Planning of Service Outsourcing Development’; in the next 5 years, the service outsourcing industry will develop quicker and quicker. It is expected that until the end of the 13th- Five Year, the implementation amount of service outsourcing in Qinhua district will reach 3 billion USD” said by Chen MingQiang, the vice director of Bureau of Commerce in Qinhua district.

According to introduction from Chen MingQiang, until now, the annual amount of tax from 200 + service outsourcing enterprises in Qinhuai district has exceeded 600 million RMB, which accounting for 60% of total tax value in Qinhuai district. Besides that, income and tax value form more than 80% of service outsourcing enterprises also keep the annual growth with 30% or more. “Qinhuai district pays attention on service outsourcing development not only through words; but also through actions let all district attend development even covering departments from each county & town & street, let them set up service outsourcing leading group and make regular discussion according to practical situation. This system effect shall ensure that service outsourcing can reach comprehensive development in each part of district” said by Chen Mingqiang.

Besides that, it is worth mentioning that Qinhuai district put more attention on construction of service outsourcing carriers. “Service outsourcing enterprises has relatively high requirements for development environment. Currently, Qinhuai district has established ‘4+6’ layout, and totally developed four big carriers with usable area of 100,000 square meters such as Baixia Entrepreneurship Park, 1865 Creativity Industrial Park, and Zhonghang Science & Technology City, six small carriers including Kingdee Software Park, Putian Science & Technology Park, Tongfu Building and Inspur Software Park. The ten carriers have their own characteristics provide practical convenience for enterprises in carriers that has received preliminary effect.”

The great support from government has consistently approved by service outsourcing enterprises in Nanjing. AHK (Jinling) Co. Ltd. established in 2007 is a joint venture enterprises mainly provide KPO of product testing and identification for export and import trade. The director of this company indicated for reporter that big background of downturn in the domestic and foreign trade, the income amount of this company in the half of 2015 reached 65 million RMB or more, which increasing 10.3% year-on-year.

"Currently, it is difficult for our industry to keep stable situation without downturn. The reason why AHK can accomplish good growth is mainly benefited by good development environment of service outsourcing industry in Nanjing” said by the director, “Municipal Bureau of Commerce and Bureau of Commerce in district provide practical services for us. They also regularly understand our recent situation; sometimes, when we face difficulties and don’t know how to say, they actively help us to coordinate, solve and timely dissolve the risk. They also actively help us to achieve tax preference that reduce burden of income tax cost for us greatly. AHK also has reached relative financial inspiration in 2015 under the help from Bureau of Commerce; therefore, we can employ more high-quality talents fully using this capital.”

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