Circular of Ministry of Commerce on Implementing the "Thousand-Hundred-Ten Project"
Source: Ministry of Commerce View: 405 Date: 2011-05-16

Service outsourcing industry, as an integral part of modern high-end service industry, is characterized by large bearing capacity of information technology, high added value, small consumption of natural resources, little environmental pollution, abundant employment opportunities (esp. for college graduates) and high level of internationalization, etc. The world is now witnessing the rise of a new round of worldwide industrial restructuring featuring service outsourcing, service trade, high-end manufacturing and the transfer of technological research and development, which brings new opportunities to the development of China’s modern service industry oriented towards the international market. To seize the opportunities and develop international offshore outsourcing business are conducive to the shift of the growth mode of foreign trade, expansion of the export of knowledge-intensive service, optimization of the mix of foreign investment and elevation of the quality and level of utilization of foreign investment.

In accordance with the requirements in the Outline of the Eleventh Five-Year Plan for National Economic and Social Development, i.e. to accelerate the shift of the growth mode of foreign trade……develop some bases of service outsourcing and well prepare for the transfer of international service industry, Ministry of Commerce decides to implement the "Thousand-Hundred-Ten Project" of Service Outsourcing for the purpose of promoting the development of service outsourcing industry, optimizing the export structure and expand the export of service. The objectives and main policies of the "Thousand-Hundred-Ten Project" of Service Outsourcing are as follows:

I. The Objectives of the "Thousand-Hundred-Ten Project" of Service Outsourcing:

During the Eleven Five-Year Plan period, efforts shall be made to develop 10 base cities of service outsourcing with international competitiveness, promote 100 well-known transnational corporations to transfer their service outsourcing businesses to China and cultivate 1000 large and medium-sized service outsourcing enterprises with international qualification. Favorable conditions will be created to accept international offshore service outsourcing businesses in an all-round way, increase the value of service and quadruple the export volume of service outsourcing of the year 2005 by 2010.
"Service outsourcing enterprises" in the present circular refer to service outsourcing providers who provide service outsourcing to customers according to the long and medium term service contracts signed with service outsourcing initiators; "service outsourcing businesses" refers to information technology outsourcing (ITO) and business process outsourcing (BPO) provided for customers by service outsourcing enterprises, which include: outsourcing of applied commercial process, e.g. business reform, business process and process service, applied administration and service, and outsourcing of fundamental technologies (IT, software development and design, technological research and development, integration of fundamental technological platform and of management), etc; "international offshore outsourcing" refers to service outsourcing enterprises conducting service outsourcing business with overseas customers.

II. Implement the Talent TraininProject" of Service Outsourcingg Plan of the "Thousand-Hundred-Ten Project" of Service Outsourcing

1. Allocate special funds for public training of service outsourcing from business talent training funds and implement the talent training plan of the "Thousand-Hundred-Ten Project" of Service Outsourcing.
2. Special funds for public training of service outsourcing are used to help college graduates (junior college graduates included, sic passim) enhance their expertise and techniques of service outsourcing, encourage service outsourcing enterprises to conduct various training programmes oriented towards newly added posts, with the new graduates, graduating students and newcomers in service outsourcing enterprises as the major trainees, for the purpose of training 300000-400000 talents much needed for accepting service outsourcing businesses, creating job opportunities for 200000-300000 college graduates and effectively solve the problems of talent shortage in service outsourcing industry and of employment of college graduates.
3. The training of service outsourcing shall include: training of specialties, qualification, international authentication, occupational standards and intellectual property rights, internship and work-study program for college graduates, pre-job technical training for newcomers in the enterprises and for talent reserve in this industry, etc.

The specific plans of the "Thousand-Hundred-Ten Project" of service outsourcing shall be implemented in accordance with the Circular of Ministry of Commerce on Fulfilling the Work of Talent Training in the "Thousand-Hundred-Ten Project" of Service Outsourcing (Appendix I).

III. Support the Service Outsourcing Enterprises to Expand and Upgrade

1. Encourage the service outsourcing enterprises to be authenticated internationally. According to the Circular of Ministry of Commerce on Fulfilling the Work of Enterprise Authentication and Market Development of the "Thousand-Hundred-Ten Project" of Service Outsourcing (Appendix II), service outsourcing enterprises which have met the requirements and obtained international authentication will be granted some rewards and effective measures will be taken to support the maintenance and upgrading of the authentication with a view to helping 700 enterprises obtaining CMM/CMMI3 Authentication and 300 CMM/CMMI5 Authentication in 5 years. The international authentications include: Development Capability Maturity Model Integration (CMMI), Development Capability Maturity Model (CMM), People Capability Maturity Model (PCMM), Information Security Management Standards (ISO27001/BS7799), IT Service Management (ISO20000), Service Provider Environment Security (SAS70).
2. Provide policy-based loans and other services for the development of service outsourcing enterprises. China Development Bank will, in cooperation with Ministry of Commerce, grant policy-based loans for service outsourcing enterprises which meet the related requirements to purchase equipment, build office facilities, conduct service outsourcing business, develop international market and expand export, etc. China Export & Credit Insurance Corporation will, in cooperation with Ministry of Commerce, provide credit insurance and other insurance services and assist service outsourcing enterprises in establishing credit risk management mechanism.
3. Support service outsourcing enterprises to develop international market and accept international offshore service outsourcing businesses. Provide financial support to service outsourcing enterprises which meet the requirements to develop international market in accordance with Measures for the Administration of Funds for the Development of International Market of Small and Medium-Sized Enterprises.

IV. Build "China Base Cities of Service Outsourcing"

1. Ministry of Commerce and Ministry of Information Industry will select a series of central cities with the foundation and developing potential of service outsourcing as "China Base Cities of Service Outsourcing" (hereinafter referred to as "base cities") and facilitate their development from various aspects, such as macropolicy, plan and design, personnel training, investment invitation and comprehensive coordination, etc. Special funds will be established to subsidize the development of the base cities. The building of "China Base Cities of Service Outsourcing" shall be carried out in accordance with Circular of Ministry of Commerce and Ministry of Information Industry on Relevant Issues on Qualification of "China Base Cities of Service Outsourcing" (Appendix III).
2. China Development Bank will, in cooperation with Ministry of Commerce, grant policy-based loans to the base cities for their construction of public service platform of technical support for service outsourcing, public information network, infrastructure and investment environment. The construction of public service platform shall focus on providing public services such as technological research & development, quality assurance and testing, demonstration, validation, training, programme management and protection of intellectual property rights, and construction of infrastructure and investment environment shall cover the shared facilities of data storage, information transmission, power guarantee and logistic support.

V. Establish China Public Service Platform of Information in Service Outsourcing

Ministry of Commerce will initiate the establishment of China public service website for information in service outsourcing, with the support of all base cities, transnational corporations, enterprises and well-known institutions in service outsourcing and other research units. It aims at providing various information of service outsourcing and establishing a business transaction platform for service outsourcing enterprises, foreign and domestic service outsourcing initiators, government departments, research institutions, higher education institutions and (junior) college graduates, and it will provide public services for headhunting of service outsourcing enterprises and job seeking of (junior) college graduates. Publicity activities will be enhanced to create a favorable image of "Service of China".

VI. Encourage and Support the Central-Western Region to Develop Service Outsourcing Business

Give full scope to the human resources advantage of the Central-Western region and Northeast China and other old industrial bases and give priority to the cities in the Central-Western region with relatively more higher education institutions in the work of base cities approving and relax the requirements for approval if necessary; take effective measures to encourage the strategic cooperation between base cities in Eastern China and in Central-Western region; subsidize the state level economic and technological development zones in Central-Western region for their interest payment of loans granted for the infrastructure construction and improvement of investment environment.

VII. Improve the System of Intellectual Property Right Protection in Service Outsourcing

Establish intellectual property right complaint centre in base cities, crack down on various infringement acts and intensify the protection of intellectual property rights; all base cities shall, based on the special needs of the service outsourcing industry, further improve the system of laws and regulations of intellectual property right protection, formulate rules of secrecy for data of service outsourcing, establish the system of comprehensive evaluation of intellectual property right protection in service outsourcing industry and create a favorable atmosphere which values honesty.

VIII. Promote Investment in Service Outsourcing Industry

Formulate a investment promoting policy with the knowledge of the latest development in service outsourcing industry and the experience of other countries, and raise China’s international competitiveness in accepting service outsourcing business; promote investment in service outsourcing industry under the guidance of Ministry of Commerce and with overall planning; give full scope to the influence of China Council for International Investment Promotion, Investment Promotion Agency of Ministry of Commerce and local investment promotion agencies, work out special working plans and promote transnational corporations to transfer their service outsourcing business with considerable scale to China through diversified order services.

IX. Well Carry out the Statistic Work of Service Outsourcing Industry

Further improve the existing service trade statistic system, incorporate international offshore service outsourcing business into the scope of service trade statistics and establish scientific, all-round and systematic full caliber statistic norms of service outsourcing; Ministry of Commerce will enhance the connection with the competent departments of commerce at various levels to establish efficient data collecting channels, keep abreast of the implementation situation of the "Thousand-Hundred-Ten Project" of service outsourcing and evaluate the work results.
With common understanding, the competent departments of commerce at various levels shall attach great importance to the "Thousand-Hundred-Ten Project" of service outsourcing and create a good environment for the development of the service outsourcing industry based on the local realities. Problems found out in the process of implementation shall be timely reported to the Ministry of Commerce.

Appendix I: Circular of Ministry of Commerce on Fulfilling the Work of Talent Training in the "Thousand-Hundred-Ten Project" of Service Outsourcing(omitted)
Appendix II: Circular of Ministry of Commerce on Fulfilling the Work of Enterprise Authentication and Market Development of the "Thousand-Hundred-Ten Project" of Service Outsourcing(omitted)
Appendix III: Circular of Ministry of Commerce and Ministry of Information Industry on Relevant Issues on Qualification of "China Base Cities of Service Outsourcing" (omitted)


Ministry of Commerce, People’s Republic of China
October 16, 2006

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