Service outsourcing is new Tianjin growth engine

In recent years, Tianjin has vigorously developed the service outsourcing industry as a new engine driving local economic growth.

During the first five months of this year, companies in Tianjin signed 1,181 service outsourcing contracts at a value of 1.49 billion US dollars, a 99.9% year-on-year increase. The offshore contracted value amounted to 960 million US dollars, an 86.9% year-on-year increase.

Outsourcing companies in Tianjin currently number more than 1,000; more than 2.5 times the figure for 2012. The annual project delivery of the top 40 of those companies exceeds $10 million; the number of companies at that level is 2.2 times that of 2012. The strength of market entities has been significantly enhanced.

In addition, because the service outsourcing industry in the city has continuously expanded, its content has been upgraded to a higher level.

The city has three main business types of outsourcing services, namely information technology outsourcing (ITO), business process outsourcing (BPO) and knowledge process outsourcing (KPO), all of which are high-tech and high value added. They are the main driving force for the growth of Tianjin’s service outsourcing.

More specifically, during the first five months of this year, among the city's 35 types of service outsourcing businesses, software development, bio-pharmaceutical research and development, financial services and six other major areas accounted for more than 60% of the city’s total service outsourcing delivery.

As a high-end business, service outsourcing has definite advantages such as a large reservoir of information technology, high added value, low resource consumption, low environmental pollution and a strong ability to provide employment.