Devott Insights: The Talent Competitiveness is the Important Element in Influencing the Attractiveness of Service Outsourcing Cities
Source: View: 207 Date: 2015-06-18

"For Industry Development, Firstly Develop Talent”. As one of wisdom labor-intensive industries, talent is one of core elements for service outsourcing industry and is also main force to promote development of service outsourcing industry. Compared with other elements, the scale and variation of talent capital in the cities can directly influence the value system of the cities and then influence competitive ability and attractiveness of the cities. However for a city, the bigger competition from talent, the innovative ability from city is stronger, the quality from city is higher, the industrial size from city is larger, the comprehensive scale change of industry from city is quicker and the value system from city is larger and faster expanding with other abundant requirements. At same time, in the industrial wave of service outsourcing industry transformation in China from first-tier cities to second-tier/ third-tier cities, from eastern coastal to middle-western, the cost and talent have become the firstly considering element for industrial transformation. Relative research from Devott shows that there are near 65% of total revenue from service outsourcing enterprise usually used for paying labor cost; 10-15% for paying property rent and office fee; then the remaining is profit. The main cost advantage of second-tier cities is also talent cost and has become the key driven power to promote service outsourcing industry in China strategically transform from first-tier cities to second-tier cities. Therefore, those cities have lower cost and higer quality of talent will have most competitive advantages in this transformation at same time. Besides that, for new cities, development areas, parks and second-tier/third-tier cities those transform to service economy, competitive abilities of human resources is engine to promote city development and transformation, and is also important element to accomplish and to rebuild dynamic mechanism, changing economic form and breakthrough city functions. Therefore, in the development process of service outsourcing industry in future, cities those can firstly understand the importance of talent and correctly hold owned talent features and then build talent highland and talent pool will gain first development in industrial transferring and industrial transformation. That is getting talent to get market.

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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