Service Outsourcing Becomes Guangzhou's Strong Economic Practice

Source: english.gz.gov.cn

It is learned that Guangzhou will promulgate a specific policy on boosting the development of modern service industry.

The policy covered two aspects, including the instructive opinions on speeding up the development of the service industry on the macro side and the detailed development instruction opinions on 12 fields including service outsourcing, logistics, finance, and information services.

A source said that it was estimated that Guangzhou's municipal finance will allocate at least RMB 1-1.2 billion annually to support the development of the above industries.

The source said that "Although Guangzhou still does not have a clear idea as to its modern service industry development framework, the relevant work was launched last year". The service outsourcing would also become a point of force application for Guangzhou to carry through Guangdong's policy on establishing modern industry.

Beginning last year, Guangzhou established a Service Outsourcing Leadership Group headed by Vice Mayor Chen Mingde, forming the joint work mechanisms and policy pooling mechanisms of multiple divisions. It planned to pour at least RMB 200 million to push the development of service outsourcing. It also recognized 30 major service outsourcing enterprises. At the beginning of this year, Guangzhou was honored as a "China Service Outsourcing Base City".

Chu Xiaohua, Section Chief of the Technology and Service Trade Section of the Guangzhou Foreign Economic and Trade Bureau disclosed on August 21st that the service outsourcing was recognized by Guangzhou as a high-end field of the service industry. "The preliminary plan was to make Guangzhou's offshore service outsourcing business able to exceed RMB 5 billion, which was estimated at around RMB 3 billion this year".

Guangzhou was not the only player in the field. Li Jiangfan, Director of the China Center for Service Sector Research and Doctoral Tutor of the Management School of Sun Yat-sen University said that analyzed on Guangdong's regional development level, Guangzhou and Shenzhen were the main force of the region and the core areas of modern industry.

"The Pearl River Delta area outside of Guangzhou and Shenzhen (e.g., Foshan, Zhongshan and Dongguan) is now an intensive area of the manufacturing industry, the radiation force of the core area covered directly the said areas; while the third level areas, including the east and west wings of Guangdong Province and the mountain areas in the north of Guangdong Province, will assume the task of accepting the transfers of the non-modern industries from the core areas."

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Editor: Ronald Li