According to statistics from the 2nd China International Service Outsourcing Cooperation Conference, in the first five months of this year the number of newly-established outsourcing enterprises in China stood at 1,057, bringing 246,000 job opportunities and generating a lucrative profit of 3.52 billion US dollars, a 13.2 percent increase year-on-year. The contract amount stood at 2.3 billion US dollars, with international outsourcing services taking 82.4 percent, a yearly increase of 45 percent.

China's outsourcing industry rebounded despite the unfavorable global trade situation. In spite of the unfavorable economic situation, China's outsourcing services ushered into an opportunity of rapid development.

Worsening global financial crisis brings opportunity for China's outsourcing industry

Outsourcing is a subcontracting a process, such as product or manufacturing, to a third-party company. Experts say the global downturn urges entrepreneurs to improve productivity and efficiency as well as lower production costs. China, a country with lower human resources costs, will doubtlessly get more outsourcing business.

Meanwhile, many enterprises greatly cut down research-and-development expenditure, hoping to further explore Chinese and even the international markets by outsourcing non-essential business to overseas enterprises. Such moves are conducive to the cooperation and service upgrade between Chinese enterprises and their counterparts, and bring opportunity for China to develop high-end businesses. As one Japanese entrepreneur noted, outsourcing extra business to China has become the top choice for many multinationals.

Outsourcing brings huge employment potential

Currently, outsourcing services, the center of another round of international industrial transfer, are expanding rapidly around the world. The development of outsourcing services can help improve China's trade pattern and the mode of economic growth, enhance balanced regional development, and expand the employment channels for college graduates as well as boost domestic demand.

According to statistics, there are some 5,500 enterprises in China specializing in outsourcing services, creating over one million job opportunities by the end of May this year.

Officials with Jiangsu provincial trade and economic department said global outsourcing services in the region once showed a sign of decline due to the global downturn. However, since March this year, all the indexes have rebounded robustly. By the end of first quarter this year, there are 1,698 enterprises in Jiangsu specializing in outsourcing services, which have created 185,000 jobs for locals.

Additionally, outsourcing services also provide job opportunities for college graduates. Among the 246,000 newly added jobs in the first five months, college graduates took up 192,000, accounting for 78 percent.

Rich human resources is another China’s advantage in terms of outsourcing services. Statistics show in 2008 there were 350,000 college graduates majoring in computer sciences and software engineering, the world's largest IT talent pool. Ministry of Commerce and Ministry of Education also planned to foster another 1.2 million talents for outsourcing services in the next five years.

By People's Daily Online

http://paper.people.com.cn/rmrb/html/2009-06/25/content_282128.htm