The Report on Service Outsourcing Development of Jia Xing City in Q1
Release time:2016-12-15

From January to March, Jiaxing achieved service outsourcing contract signing amount of 136 million RMB, a y-o-y decrease of 25.6%, and execution amount of 136 million RMB, a y-o-y increase of 11.3%, offshore execution amount of 9.224 million USD, a y-o-y decrease of 27.6%. Its service outsourcing development is listed as the fifth in the whole province of Zhe Jiang, occupying 84% of the entire provincial data.

I. Characteristics of the development

1. Layout of business. Service outsourcing companies and business concentrate in the city. Take the contract signing as an instance, in Nanhu, there are 11 enterprises signing contracts, in Xiuzhou, there are 6, followed by Tongxiang with a number of 4, the least one is Pinghu with a number of one, while the others are all 3. In aspect of the amount of business, the city’s business occupied 50.77% of the total volume. Seen from the exact quantity, Nanhu topped the list, Tongxiang the second, while Xiuzhou, Haiyan are in the second row. To compare with last year, Haiyan has made great progress this year. 
2. Structure of business. In aspect of format structure, information technology outsourcing (ITO) services amounted 56,700,200 RMB, accounting for 41.71% of the total contract; business process outsourcing (BPO) services amounted 49,345,500 RMB, accounting for 36.30% of the total contract; knowledge process outsourcing (KPO) services amounted 29,891,100 RMB, accounting for 21.99% of the total contract. In aspect of the source structure, during January to March, Jiaxing undertook offshore business from 19 countries and regions, including Japan, the United Kingdom, Puerto Rico, Hong Kong and Denmark, which are the top five business source countries and regions, whose business accounts for 76.12% of the total volume.
3. Demonstration parks. From January to March, provincial, municipal service outsourcing demonstration parks achieved an amount of 65,603,500 RMB in service outsourcing contract signing, down by 57.5% year-on-year, an amount of 61,015,500 RMB in execution, down by 39.1% year-on-year, including the offshore execution amount of 5,225,200 USD, down by 47.6 % year-on-year. Contract signing amount, the amount of contract execution and offshore execution accounted for 48.17%, 44.89% and 56.65% of the total amount of the city respectively. There achieved 1.023 billion RMB in fixed assets investment, 10,946,900 RMB in public platform investment, and 3100 square meters of business space.
4. Personnel training. In March, there were 192 trainees, with a cumulative trainee of 449, which were all trained by the provincial and municipal training institutions. In the first quarter, there were 6 training institutions failed in finding training businesses, and reserve personnel in outsourcing s still short.

II. The existing problems in development

The overall situation is very grim this year.
First, there is problem in the completion rate. The three indicators of contract signing amount, execution amount and the offshore execution amount only completed 11.68% 、15.05% 、13.77% of their respective annual aim. Besides the carry-case of last year, the whole situation is declining, and offshore business saw a greater decline of 27.6% if the carry-case uncounted. 
Second, there is problem in key area development. The amount of those three indicators of the city occupied 50.8%, 43.26% and 54% respectively, much lower than the occupation of 81%, 81.57% and 76.69% of last year.
Third, there is problem in demonstration parks’ development. The three indicators of demonstration parks occupied 48.17%, 44.89% and 56.65% of the total volume respectively, much lower than the requirements. The fostering and demonstration effect of the parks did not manifest.
Fourth, there is problem in companies’ development. In the first quarter, there were few registered companies, with a cumulative number of 279, and only one companies with actual results. While there were 100 companies with actual results in the end of last year, there were 43 companies in the first quarter of last year. This problem is concerned with the characteristics of service outsourcing companies in Jiaxing, that is, there are many service outsourcing companies in manufacturing and foreign trade, while there are fewer companies specialized and focusing in the research, development, and design. And many companies are still obeying the traditional way of data input.