Service outsourcing contracts undertaken by Chinese firms up 20.2 pct y-o-y in value from Jan. to Nov.

By：Xinhua Silk Road Update：2021-12-18

BEIJING, Dec. 17 (Xinhua) -- Chinese firms has inked service outsourcing contracts worth about 1560.4 billion yuan from January to November in 2021, with the execution amount registering 1101.6 billion yuan, up 20.2 percent and 19.4 percent year on year, respectively, reported Securities Daily Thursday quoting an official.

During this period, the value of offshore service outsourcing contracts undertaken by Chinese firms reached 876 billion yuan and the executed amount came in at 656.9 billion, an year-on-year increase of 14.4 percent and 16.7 percent, respectively, said Shu Jueting, spokesperson of the Ministry of Commerce, at a regular press conference held Thursday.

Statistics show that from January to November this year, 37 demonstration cities for service outsourcing had signed offshore service outsourcing contracts of 763.2 billion yuan in total and executed 576 billion yuan, accounting for 87.1 percent and 87.7 percent of the national total, respectively.

The offshore service outsourcing contract value undertaken by cities in the Yangtze River Delta region hit 416.9 billion yuan, with the execution amount recording 329.9 billion yuan, taking up 47.6 percent and 50.0 percent of the national total, respectively.

The offshore service outsourcing contracts undertaken by China from the Belt and Road countries notched 169.1 billion yuan, with the execution amount standing at 124.1 billion yuan, an year-on-year growth of 28.2 percent and 25.2 percent, respectively.

Private enterprises executed offshore service outsourcing contracts of 179.6 billion yuan, occupying 27.3 percent of the national total, and increasing by 30.4 percent year on year, 13.7 percentage points higher than the national average.

Offshore service outsourcing in new energy technology research and development (R&D), information technology solutions, industrial design, pharmaceutical and biotechnology R&D grew rapidly, with a year-on-year increase of 89.4 percent, 78.8 percent, 34.0 percent and 19.9 percent ,respectively.

The executed value of information technology offshore outsourcing contracts registered 289 billion yuan, indicating that China's information technology has become a pillar industry and the most important component of China's service trade exports, said Pan Helin, executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law.

According to Pan, China's service outsourcing is expected to maintain a growth rate of about 20 percent throughout the year, and sub-sectors in information technology, business process and knowledge process outsourcing will be the main driving engine for China's outsourcing service trade exports.