Development of service outsourcing from January to September 2013 in Zhejiang
Source:  View: 208 Date: 2013-10-28

From the beginning of this year, the development of service outsourcing in Zhejiang continues to grow steadily. From January to September, the total amount of export and import is $23.282 billion, 78% of the annual target, a year-on-year increase of 31.4%. The amount of export is $13.737 billion, a year-on—year increase of 30.75%; the amount of import is $9.545 billion, a year-on-year increase of 32.33%. The amount of export in September reaches $3.017 billion, 6.9% more than that in August.

The major four sectors in Zhejiang are Travel service, computer and information service (offshore outsourcing), construction and relevant engineering service, transportation service. The four sectors combined contribute to 80.23% of the amount of import and 88.88% of the amount of export. The shares of education service, distribution service and culture service increase to over 15%. The number of registered companies in the Zhejiang International Service Trading Monitoring System now is 935, including 3 companies registered in September. From January to August, the number of new employees is 50,350, and 55% of them has a bachelor degree or above.

From January to September, the execution amount of offshore outsourcing contracts is $2.95 billion, a year-on-year increase of 42.89%. The execution mount of offshore contracts in September is $456 million, 62.09% more than August and a year-on-year increase of 142.54%. It accounts for 65.58 of the annual target. Wenzhou, Huzhou, Taizhou, and Shaoxing have exceeded the target progress and finished 89.06%, 88.17%, 81.28%, 78.99% respectively while other cities fails. Hangzhou, Ningbo, Shaoxing, Jinhua and Huzhou rank top 5 in the execution amount. The execution amounts of offshore contracts in the top 5 cities are $2.4 billion, $274.3 million, $61.1 million and $47.5 million respectively. The amount of Hangzhou accounts for 82.51% of the whole province.

Among all the outsourcing contracts, by geographic markets, the execution amount of contracts from U.S is $992 million, 33.62% of that of the whole province; the execution amount of contracts from Japan is $312 million, 10.60% of that of the whole province; the execution amount of contracts from Hong Kong is $269 million, 9.13% of that of the whole province; the execution amount of contracts from Russia is $106 million,3.62% of that of the whole province; The following countries which ranks in fifth to eighth are Finland, Germany, India, and UK.
By industry structure, the execution amount of ITO is $1.86 billion, 63.18% of total amount; the execution amounts of BPO and KPO contribute 6.44% and 30.38% respectively to the total amount.

There are 104 companies that have execution amount of offshore contracts beyond $5 million, contributing 80.75% of the total execution amount. There are 49 companies that have execution amount of offshore contracts beyond $10 million, contributing 67.31% of the total execution amount.

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