Model Cities



Geographic Background:

Jinan situates at 36º40'N and 117º00'E, Jinan is near Mount Tai to the south and neighbors the Yellow River on the north, and the terrain of Jinan slopes down from south to north. There are two major water systems in Jinan: the Yellow River and the Xiaoqing River. Jinan is influenced by the warm temperate zone with a continental monsoon climate. It has four distinct seasons and sufficient sunlight.

Jinan has been honored as the 'City of Springs'. With springs being its soul, Jinan is entitled as one of the earliest excellent touring cities in China. There are as many as 733 springs within Jinan city. In the old area of the city of 2.6 km2, there are Baotu Spring, Heihu Spring (black tiger), Zhenzhu Spring(pearl), Wulong Tan Spring (five dragons), as well as nearly 100 springs, which are a feast to the eyes and minds.

East China, Jinan is the political, economic, cultural, science and technology, educational and financial center, and a nation-authorized city of deputy provincial level and a coastal opening city. The whole city has an area of 8,177 km2, and the urban area 3,257 km2. Jinan governs 6 districts: Lixia, Shizhong, Huaiyin, Tianqiao, Licheng, and Changqing, and 3 counties: Pingyin, Shanghe, and Jiyang. By the end of 2008, Jinan had a population of 6,039,900 of 48 nationalities.

Economic Background:

In 2008, the economy in Jinan developed steadily and fast. The total output value reached as much as 301.74 billion Yuan, 13.0% higher than last year. Economic structure was further adjusted, and the first, second and tertiary are 5.8:44.1:50.1 in proportion. High and new technology has been rapidly developed and its annual output value reached 146 billion yuan, increasing by 25.2%. The results of energy-saving and emission-reduction have been good. Energy consumption per 10,000 yuan of domestic gross product and discharge of major pollutant are decreasing faster. The livelihood of people has been improved. The average spendable income of urban citizens is 20,802 yuan, increasing by 15.5%; the average net income of suburban residents is 7,180 yuan, increasing by 14.0%. Agricultural industry has been growing steadily. Grain acreage reached 6.779 million mus (1mu≈666.6m2), rising by 2.3%. Total grain output was 2.815 million tons, rising by 5.0%. Jinan is one of the nine financial zones in China, with a full range of specialties and sound operations. The general financial revenue of the city and the general budgetary revenue of local governments reach respectively 92.26 billion yuan and 18.60 billion yuan, and respectively 20.4% and 18.5% higher.

Jinan service Outsourcing Industry Development


Jinan has incorporated the undertaking of international (offshore) service outsourcing and the expansion of high-end service product export into its Eleventh Five-year Plan, and compiled clear objectives for the development of service outsourcing industry by 2010:

1. The revenue of software and service outsourcing business shall reach RMB 400 billion;

2. The export of software and service outsourcing shall reach US$ 500 million;

3. To attract 150 domestic and overseas enterprises to establish service outsourcing companies in Jinan; to have five large outsourcing enterprises with 3,000 to 5,000 employees and six enterprises with CMM5 certification;

4. To attract 35,000 undergraduates and have over 100,000 service outsourcing personnel.

Political Support:

To promote the development of the service outsourcing industry, Jinan has issued a series of policies including Opinions on Promoting the Development of Service Outsourcing Industry, Measures for Certifying Service Outsourcing Enterprises and Training Institutions (Trial), and Temporary Administrative Measures on the Special Fund of Jinan for Service Outsourcing. Besides, in terms of service outsourcing information safety and intellectual property protection, Jinan has issued various policies and regulations such as Opinions of Jinan Government on Strengthening Patent Work, Measures of Jinan for Appraising Patents (Temporary), and Plan for the Special Action of Intellectual Property Protection in Jinan. Besides, Jinan has also established Jinan Intellectual Property Report and Complaint Center to fight against various rights infringement behaviors. With regard to the characteristics of the service outsourcing industry, relevant departments are discussing the compilation of local regulations on personal information protection. The subsidy for the training of service outsourcing personnel is as follows: the subsidy for fresh university graduates and graduates of colleges and secondary schools with no work experience may not exceed 50% of the training fee or RMB 2,000 per person; that for pre-occupation training of new employees may not exceed 60% of the training fee or RMB 3,000 per person. For customized personnel training, proper subsidy should be provided to service outsourcing enterprises.

Incentives are offered in different levels for service outsourcing enterprises in Jinan: RMB 50,000 for enterprises with an annual export between US$ 1 million and 3 million; RMB 100,000 for enterprises with an annual export between US$ 3 million and 5 million; RMB 200,000 for enterprises with an annual export between US$ 5 million and 10 million; and RMB 300,000 for enterprises with an annual export above US$ 10 million. The incentives are issued in January every year according to the actual export value of the previous year provided by customs statistics. Besides, there has been established the service outsourcing contribution award which offers RMB 50,000 - 200,000 as incentives to companies with outstanding contribution to the attraction of service outsourcing businesses.

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