Chongqing — In the first half of this year, the contract value of knowledge process outsourcing was US$500 million, a year-on-year increase of 57%, according to the Chongqing Municipal Commission of Commerce recently.
In recent years, Chongqing’s service outsourcing has developed rapidly. In 2020, the implementation of Chongqing's offshore service outsourcing amounted to US$2.28 billion, a year-on-year increase of 10.5%. Chongqing’s offshore service outsourcing contract and execution value achieved double growth in the first half of this year. The contract value was US$720 million, a year-on-year increase of 68.7%, which was 37.5% higher than the national average growth rate, and the execution value was 520 million.
Service outsourcing is an economic activity in which enterprises use external professional service providers to integrate the value chain in the modern social economy. It plays an important role in adjusting and optimizing the economic structure, transforming and upgrading traditional industries, and building a moderately prosperous society in all respects. It is a booster of national economic and social development.
Knowledge-intensive outsourcing
Thanks to the high-quality development of Chongqing's manufacturing industry, Chongqing's knowledge-intensive outsourcing has developed rapidly, occupying a dominant position in the city's international outsourcing business.
In the first half of this year, the contract value of knowledge process outsourcing grew by 57% compared with that of last year. The execution value was US$360 million, a year-on-year increase of 38.4%, accounting for 69.2% of the city’s total service outsourcing.
Liangjiang Digital and Economic Industrial Park. (iChongqing file photo)
Among them, the implementation of industrial design outsourcing was US$250 million, a year-on-year increase of 82.2%, mainly in the field of production design outsourcing in the field of automobile and motorcycle parts. The implementation of pharmaceutical and biotechnology research and development outsourcing was US$82.87 million, a year-on-year increase of 55.6%.
The largest testing and certification industry built by Chongqing high-tech zone has gathered 25 inspection and testing institutions such as China Electronic Product Reliability and Environmental Testing Research Institute, National Quality Inspection Base, and Chongqing Vehicle Inspection and Research Institute, with an output value of nearly 1 billion yuan.
China Electronic Product Reliability and Environmental Testing Research Institute. (Photo provided to iChongqing)
In addition, China’s largest service outsourcing platform built by Chongqing’s local company ZBJ.com has more than 28 million users on the platform, providing more than 5 million design services, 1.8 million marketing promotions, and 110 productive service parks across the country. The company's first batch of onshore outsourcing contracts amounted to US$61.27 million this year, which is the biggest growth point of our city’s onshore outsourcing.
Explore the international market
The Chongqing Municipal Commission of Commerce actively explore the international market for service outsourcing, strengthen economic and trade exchanges and cooperation with internationally renowned outsourcing regions, and actively help companies build global network system through various methods such as participation in exhibitions, online promotion, live media, research visits, etc. Global network system.
Comprehensive Service Platform for International Testing and Certification Service Trade in Western China. (Photo provided to iChongqing)
In the first half of 2021, Chongqing enterprises have steadily undertaken offshore business from 81 outsourcing markets around the world. The execution amount of offshore outsourcing from Hong Kong, the United States, and Germany was US$137.1 million, US$62.1 million, and US$47.04 million, respectively, accounting for 47.62% of the city’s offshore service outsourcing total.
The outsourcing business from Belgium, Myanmar, and South Korea grew rapidly, all of which more than doubled. The value of offshore outsourcing contracts undertaken by countries and regions along the Belt and Road was US$193.06 million, and the executed value was US$122.08 million, representing a year-on-year increase of 94.7% and 43.65%, respectively. Due to the epidemic outbreak in India, our city’s exports of pharmaceutical and biological R&D services to India increased by 244.5% year on year.
Taking advantage of the New International Land-Sea Trade Corridor, Chongqing has strengthened service cooperation with the Association of Southeast Asian Nations (ASEAN), undertaking the ASEAN market outsourcing execution amount of US$52.78 million, achieved a year-on-year increase of 71.8%.