Chinese businesses' service outsourcing contracts on the rise

BEIJING - The growth of China's service outsourcing industry quickened in the first 11 months on strong overseas demands, latest data from the Ministry of Commerce (MOC) showed.

Chinese businesses inked service outsourcing contracts worth 836.09 billion yuan ($120.3 billion) during the January-November period, up 17.5 percent year on year.

The growth was faster than the 9.5 percent rise seen in the first ten months.

Among the deals were offshore service outsourcing contracts valued at 552.7 billion yuan, rising 17.1 percent year on year.

Service outsourcing contracts from the United States and European Union went up 8 percent and 23.1 percent, respectively.

China is the world's second largest service outsourcing provider after India. The State Council described the sector as a "green industry" that will be a new engine for tertiary industry and a boon to increasing employment.

As part of efforts to stimulate the sector's growth, China's Ministry of Finance announced last month to extend tax breaks to outsourcing service providers in more cities.

Service firms with advanced technology in 10 cities, including Shenyang, Urumqi, Qingdao and Ningbo, will have their corporate income tax lowered from 25 percent to 15 percent, from 2016 to 2018, the ministry said.