Cheng Yuhua

Deputy Director-General of Beijing Municipal Commission of Commerce

Service outsourcing industry in Beijing has ranked into fast-growth group based on its unique comprehensive advantages in market, talent, technology and infrastructure. With highly gathered industry, constantly expanding scale and significantly increasing strength, the industry has always been playing the leading role among the national service outsourcing industry. There are three characteristics in the industry development. The first is rapid growth of service outsourcing in Beijing. From 2000 to 2012, the amount executed by service off-shoring in Beijing grew more than 50 times. In 2012, service outsourcing in Beijing reached to a new stage and the amount executed by service off-shoring was $3.56 billion, with year-on-year growth of 45.4%. From January to April of this year, the amount executed by service off-shoring in Beijing reached $1.239 billion, with year-on-year growth of 18.5%. The second characteristic is steady expansion of enterprises with obvious competitive advantages. The number of service outsourcing enterprises in Beijing continues increasing. So far, there have been 63 enterprises whose off-shoring has exceeded tens of million dollars, increasing by 10 enterprises compared with 2011. There are a total of 27 service outsourcing enterprises with over a thousand people, including Pactera, iSoftStone, ChinaSoft International, which all have over ten thousand staff. Pactera has 24 thousand staff, becoming the first enterprise with over 20 thousand staff in China, which shows that the scale of service outsourcing in Beijing has reached to a new stage. In the List of Leading Enterprises and Growing Enterprises in Service Outsourcing of 2012 issued by China Council for International Investment and Promotion, five enterprises in Beijing are among top ten leading enterprises in service outsourcing of 2012 and 20 enterprises are among a hundred growing enterprises in service outsourcing of 2012. The third feature is frequent enterprise merger together with internal growth and external expansion. In 2012, iSoftStone acquired Abovenet, expanding smart business and data service ability. VanceInfo Information Technology Co., Ltd. Hisoft Technology International Co., Ltd. merged into one company named Pactera Technology Co., Ltd., which became the first serviceoutsourcing enterprise with over 20 thousand people in Beijing and even in China. BeyondSoft acquired 6 wholly-owned subsidiaries of Achievo Corporation, forming a new business situation with US and Europe outsourcing, Japan outsourcing and domestic outsourcing. All has indicated service outsourcing in Beijing has come into a new era of accelerated development by means of internal growth and external merger.