2.3.2 Domestic Market

The urbanization rate of Jiangsu reaches 50.5%. Four urban communities like Nanjing, Suzhou, Wuxi and Changzhou have been formed. They construct good platforms to undertake international manufacturing transfer and modern service industry transfer. Meanwhile, Jiangsu puts more efforts to implement the strategy to digitalize the economy. E-government, e-business and digitalization in all the rest of fields will bring huge market space for the development of Jiangsu software and information service outsourcing industry.

Jiangsu, birthplace of the national industry, is the important manufacturing base of China. It collects 11% manufacturing capacity of China. The electronics information industry develops in recent years with the growth rate of over 50%. Now, its gross product has exceeded 150 billion US dollars. Jiangsu owns powerful electronics, machinery, vehicle manufacturing and processing manufacturing represented by township enterprises. Also, there are a lot of brand-new manufacturing funded by foreign merchants. In 2007, manufacturing generated the product of 5340.522 billion RMB. With rich economic foundation and advantages of manufacturing, Jiangsu possessed a huge domestic market for software and information service outsourcing. Now, the domestic market size is about 76.4% of the total.

Confronting with more severe international competitions, more and more local manufacturing enterprises select the mode of service outsourcing or other ways in order to improve their management and services and accelerate to be internationalized. Manufacturing, finance and telecom that have greatest needs for software and information service outsourcing thrive continuously. They increase their adaptability to the service outsourcing as well. Great demands of domestic markets create a wide growing space for growing service outsourcing enterprises in Jiangsu. It also gives precious opportunities for them to gather experiences, improve competencies and earn reputations. Meanwhile, facing the huge domestic markets, a few large international outsourcing corporations also tap on the Chinese market. All these corporations bring a plenty of outsourcing contracts, advanced technology and management experiences, further pushing the development of Jiangsu software and information service outsourcing market.