White Paper on Jiangsu Software and Information Service Outsourcing Industry in 2008

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1.1.2 Industrial Status of Key Cities

The Jiangsu software and information service outsourcing enterprises are mainly distributed in the cities of Nanjing, Wuxi, Suzhou and Changzhou. All these four cities have their own characteristics in the development of software and information service outsourcing industry and are supplementary with each other. Nanjing mainly develops the software service outsourcing, particularly in the fields of government affair-related software; Wuxi endeavors to develop Japan-oriented software service outsourcing; Suzhou tries to develop embedded software, R&D and design service outsourcing and Changzhou gathers a group of digital contents outsourcing enterprises like animation production.

Nanjing

Jiangsu province and Nanjing city put forward the idea of shaping Nanjing city as China's Famous Software City. Now, two national-level software industrial bases, Jiangsu Software Park and Nanjing Software Park, have been well established. Nanjing city pays much more attention to the service outsourcing, especially software outsourcing, IC design, back-office service, office support and financial management. Till 2010, end of the 11th National 5-year Plan Period, Nanjing service outsourcing will basically form a complete industrial chain of service outsourcing led by ITO, especially the software outsourcing and BPO as the important content.

In 2006, Nanjing was recognized as a China Primary Outsourcing City by the Ministry of Commerce, the Ministry of Information Industry and the Ministry of Science and Technology. It will make best use of its geographic advantage and accelerate its aggregating effects to promote the development of the software and information service outsourcing industry.

Nanjing software and information service outsourcing industry mainly focuses on the software service outsourcing. Statistics show that there are 148 service outsourcing enterprises in Nanjing, of which 109 are software-related service outsourcing enterprises. 13 enterprises own over 1 million US dollars of outsourcing business. Most of these enterprises have good foundation of the industrial services and experiences or conditions to undertake offshore service outsourcing businesses. Also, they are playing positive role-model locally and around the area.

Wuxi

Wuxi makes every effort to push the development of service outsourcing industry. It identifies the development objective that "Till 2010, the overall business income of the service outsourcing industry will reach 3 billion US dollars and service outsourcing staffs will reach 200,000".

In September 2007, Wuxi Taihu Protection Zone was jointly approved to be the China Service Outsourcing Demonstration Zone by the Ministry of Commerce, the Ministry of Information Industry and Ministry of Science and Technology and Ministry of Education. Building the Wuxi Taihu Protection Zone as the centre, Wuxi shapes a group of quality software and information service outsourcing bases like Wuxi Software Park, Taihu Park of Science and Technology, iPark, K-Park and Industrial Design Park. As of the end of 2007, the production value of Wuxi service outsourcing reached 0.57 billion US dollars. The city has had over 430 service outsourcing enterprises with over 20,000 staffs. 18 enterprises get CMMI3 or above certificates.

The Japan-oriented service outsourcing is one characteristic of Wuxi. Now, a group of key Japan-oriented enterprises like NEC, OBC, NTT DATA, Huaxia Computer, Yokoshin Software, MENTEX Technology have been in good shape. Meanwhile, other big enterprises from European, US and domestic also flood into Wuxi, including IBM, Microsoft, NIIT, iParks, HONGKONG FunShuiLong Group, Institute of Software Chinese Academy of Sciences, School of Software and Microelectronics, Peking University, iSoftStone and Thunis etc.

It is envisaged that till 2010, Wuxi will gather 100 international service outsourcing or software export enterprises with their staff over 2000 each and an annual export of over 30 million US dollars through favored policies on rent, funds, export and training talents.

Suzhou

Suzhou has developed well in the fields of software and information service outsourcing. It orients to develop embedded software outsourcing in ITO business. As for BPO, the major businesses are human resource and financial management, mainly distributed in Suzhou Industrial Park, Suzhou Software Technology Park and Kunshan Area.

Suzhou Industrial Park is the only pilot zone in China to encourage “Advanced Technology Based Service Industry” and was conferred the “China Outsourcing Showcase Area” by Ministry of Commerce, Ministry of Information Industry and Ministry of Science and Technology in April 2007. Now, the Park has absorbed an accumulated foreign fund of 23 billion US dollars, 13 billion US dollars used practically. There are over 60 projects with each invested with over 1/10 billion US dollars, of which 6 projects have over 1 billion US dollars. Within the Park, the average investment fund of projects is over 30 million US dollars. There are over 3000 foreign invested enterprises. 74 enterprises of global top 100 enterprises have their investments in the Park and invest 111 projects. In 2007, the business income of the Park in the service outsourcing increases by 67% more than last year; the offshore outsourcing has a growth rate at over 80% of the whole year. The production value of the software industry reaches 10.03 billion RMB. In 2008, the Park plans to provide complete governmental supports to the service outsourcing enterprises in terms of policy, base construction, talent, fund-raising, customers and housing etc.

Changzhou

The Changzhou software and information service outsourcing develops very quickly. As of the end of 2007, 305 service outsourcing enterprises with nearly 20,000 staffs have been in Changzhou. It engages in software development and animation outsourcing businesses.

Changzhou makes great efforts to develop the animation industry. It owns 82 animation production enterprises; the quantity of participating enterprises ranks as the second among 15 animation bases of China. It is one of China's top 10 creative bases with best investment values. It has over 70 animation projects to be established and approved by the State Broadcasting, TV& Radio Administration and capable of producing animation pictures of over 10,000 minutes annually. To speed up the development of software and animation industry, Changzhou exclusively supports two (political) policy documents on software and animation development and identifies the action plan to develop service outsourcing industries in the following three years and speed up the realization of the objective of shaping “Two Bases and One Centre”.

To insure the supply of human resources, Changzhou executed “the project of absorbing thousands of talents aboard” with intention of introducing 1000 talents aboard within five years so as to insure the adequate supply of human resources for the development of software and information service outsourcing.