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Post time:2010-08-11Source:ChinaSourcing Author:ChinaSourcingEditor:Vicky
Overview of Nanchang

As the Capital of Jiangxi Province, Nanchang is the political, economic,[link widoczny dla zalogowanych], cultural and technoloigcal center of the province. A city sited on rivers and mountains, Nanchang has a famous river Ganjiang River flowing through the city. Many ancient scholars have left their footprints in the history of Nanchang. Thanks to its agreeable environment and deeply-rooted culture, Nanchang is hailed as China’s historic cultural city in China. As a neighbor of the deltas of Yangtze River, Pearl River and Southeast Fujian, Nanchang boasts a superior geographical position that serves as a link between north and south, east and west. Nanchang is also one of the major cities under the National Strategy to Promote Development of Central China.
As an important region absorbing industry shifting, Nanchang has plentiful labor resources and well-developed infrastructure and competitive advantages in labor cost, which has turned it into a model city for outsourcing in China.

Service outsourcing industry in Nanchang

Service outsourcing of Nanchang reached a moderate size in 2005. Its growth rate between 2005 and 2007 averaged at 29%. In 2007, the output of this industry reached 3.71 billion RMB. Service outsourcing in Nanchang is dominated by software and ITO, with software outsourcing accounting for 87.3% of the total. In 2007, Nanchang harvested 2.54 billion RMB in software sales revenues, including US$ 12.8 million exports.
Nanchang now has several leading service outsourcing companies, as represented by software companies Ahead and Strong. There are 6 companies whose sales revenues have exceeded RMB 100 million,[link widoczny dla zalogowanych], namely Strong, Ahead, Tellhow, Belltech, G&D and Huitian Technology, and 29 companies whose sales revenues have exceeded RMB 10 million. In 2007, the employment of the software industry totaled over 6 thousand.
In January 2008, Nanchang National Hi-tech Industrial Development Zone (NCHDZ) was honored as a model city for China sourcing. Sales revenues of the IT industry based in NCHDZ account for 90% of the total. There are about 280 software companies in the park. Four companies are recognized as software export companies, 3 rank among China’s top 100 software companies, and 4 are established national leading software companies.
NCHDZ has created four public service platforms: labor training, software technical support, testing and technical service, which can provide all-round service to service outsourcing companies in NHDZ.
Nanchang has established creativity-based Honggutan Creativity Industrial Park and Hi-tech Service Outsourcing Model Park. With the support of labor resources from higher education, Nanchang is armed with well-developed infrastructure and skilled labor force to conduct research on / designing of service outsourcing businesses.

Goal of service outsourcing development in Nanchang

With the support of its existing educational resources, Nanchang will increase efforts to develop IT education and training to provide a solid labor foundation for the development of service outsourcing. Utilizing its advantages in labor and cost, Nanchang will first develop calling centers and focus efforts on the development of high-end business process outsourcing dominated by businesses such as data processing and business process outsourcing. Nanchang is now improving the infrastructure to facilitate the development of businesses like data processing and back-up centers for disaster recovery.
It is estimated that in 2010 Nanchang will gain RMB 10 billion revenues from service outsourcing (8 billion from ITO and 2 billion from BPO); in RMB 2015, 40 billion (30 billion from ITO and 10 billion from BPO). The total employment of the industry will reach 70 thousand,[link widoczny dla zalogowanych], and exceed 250 thousand in 2015.

Preferential policies of Nanchang Government to encourage service outsourcing

Nanchang Government places high premium on the development of service outsourcing. Now it has introduced preferential policies for service outsourcing companies, such as Policies of the Nanchang Government to Support Development of Service Outsourcing and Methods on Administration of Support Funds for Service Outsourcing Labor Training in Nanchang,[link widoczny dla zalogowanych], specifying that Nanchang will not only allocate from its budget an equivalent amount of capital to the national support fund, but also set up a fund in 2008 to provide financial support to service companies in employment, market development,[link widoczny dla zalogowanych], housing, certification and export. In addition, Nanchang has also promulgated methods on administration of supporting funds for service outsourcing labor training to provide subsidies to companies and training agencies on the basis of the national standards.

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