1.3.2 Information of ITO Enterprises

Business Type of ITO Enterprises

ITO enterprises in Jiangsu have a wide range of business, chiefly in software development and software testing. Of them, 82.8% involve with software development outsourcing business. 43.0% engage in software testing outsourcing business. Some ITO enterprises engage in multiple outsourcing businesses, but often have one or two major outsourcing businesses.

Chart 1-5 Proportion of ITO Businesses

Business Fields of ITO Enterprises

Now, the businesses of ITO enterprises in Jiangsu are mainly in the fields of manufacturing, finance and telecom etc. 45.2% of them provide services for manufacturing, 30.1% provide services for finance and 29.0% for telecom. 28.0% for other fields like electric power, education, medical care, transport, communication and biology etc.

Chart 1-6 Proportion of ITO Business-related Industries

ITO Offshore Outsourcing Business

Enterprises with ITO offshore and onshore outsourcing businesses both take bigger proportions. 61.3% is ITO offshore outsourcing enterprises, of them, 50.0% are fully working on offshore outsourcing business.

The offshore outsourcing enterprises have relatively better advantage of outsourcing for Japan, South Korea, Europe and US. Jiangsu has a bigger amount of outsource from Japan because Jiangsu has a relatively smaller cultural difference from Japan; it has talents with stronger language abilities, capable of providing quality outsourcing services. In addition, Jiangsu has excellent tertiary educations, English education and strong basic software education, which are eligible for delivering outsourcing services to Europe and US.