1.3 Status of Enterprises

In 2007, Jiangsu-based service providers grew much faster than anyone else ever expected. Many of them have expanded into giant scale and earned great reputations. Meanwhile, the quality of their employees has been improved rapidly. More and more industries have been touched by service providers with the prompt dilation of their service scope. Their service ability and service quality have also greatly promoted. In a word, Jiangsu software and information service outsourcing industry has shown a prosperous development trend.

1.3.1 General Information of Enterprises

Type of Enterprises

The environment, foundation and advantages of Jiangsu software and information service outsourcing industry are favorable for the development of foreign invested enterprises. Joint venture and solely foreign-funded enterprises grow quickly in Jiangsu. Now, of Jiangsu software and information service outsourcing enterprises, 49.5% is private enterprises and over 45% are joint venture and solely foreign-funded enterprises. Of joint venture enterprises, Sino-Japan and Sino-US enterprises take the biggest share. Many huge Japanese enterprises start with forming a wholly invested or joint venture branch companies and then outsource the projects to China-based branch companies. Foreign corporations play an important role of pushing forward the development of Jiangsu software and information service outsourcing industry, particularly in expanding outsourcing channels and promotion of talent training.

Enterprises Establish Early and Grow Quickly

Most of Jiangsu software and information service outsourcing enterprises are early established. 16.1% of them have been for over 10 years; 63.4% for over 5 year. The average number of years in business reaches 6 years. Long time operation and development enable them to gather a plenty of experiences on client channel, delivery ability and development capacity and the risk control capacity is improving with time as well. In recent years, the quantity of enterprises increases quickly. From 2002 to 2007, the compound annual growth rate of the quantity of enterprises reaches 15.6%.

Businesses Extend to a Wider Range

The Jiangsu software and information service outsourcing enterprises have expanded their businesses globally. 41.9% form branches domestically. Of those, 11.8% have formed over five branches in other cities, 27.7% have set up branches or offices aboard, mainly in Japan, US, France, Canada, UK and Australia etc. These corporations have possessed adequate qualified staffs, delivery abilities and commercial contacts, capable of undertaking big contracts of software and information service outsourcing.

ITO Business Is the Core and BPO Business Grows Fast

The Jiangsu software industry has the good foundation and fast growth with its industrial size ranking number 3 in China. To develop ITO business based on the software industry is one of options of most software enterprises. Now, there are 87.1% enterprise worked on ITO business and 24.7% enterprise worked on BPO business in Jiangsu, 11.8% both work on ITO and BPO business.