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China's outsourcing industry surges in H1

(chinadaily.com.cn)
Updated: 2009-07-30 14:59

Contract value of China's outsourcing industry rose 32.5 percent to $2.56 billion in the first half of 2009, the Ministry of Commerce (MOC) told a press conference today.

There were over 1,400 newly incorporated outsourcing enterprises in the first half, and as many as 297,000 people joined the industry during the same period.

Related readings:  Dalian becoming a key outsourcing hub  Nurturing outsourcing in China  Service outsourcing triples in Kunshan  Global outsourcing industry converges on Jiangsu  Nanjing unveils five model outsourcing zones

Sun Peng, deputy chief of the MOC's Department of Foreign Investment Administration, attributes the upsurge in the industry to the following factors: the outsourcing industry enjoys a sound investment environment in China, the country offers a well-built infrastructure, and abundant talents in the hi-tech sector, and there is rising domestic demand in the industry.

Local governments at different levels provide incentive policies for the outsourcing industry, as it is regarded as a means to switch their economic structure in a hi-tech and service-oriented fashion, instead of relying on labor-intensive industries.

The added cost pressure from the global slowdown also drives foreign firms to transfer their non-core businesses to China, Sun added.