Moving into overdrive

Nanjing puts best foot forward to woo global outsourcing majors

After transforming itself into a major communication hub in the Yangtze River Delta region, Nanjing, the capital of Jiangsu province, is now rolling out the red carpet for domestic and global outsourcing majors as part of its mission to channel more investment into the city's service sector.

At the same time, Nanjing is also the destination of choice for many aspiring entrepreneurs like Zhao Rui, a leading player in the art production services sector of China.

"I have a dream to make my own films, much like the DreamWorks studio in the US. I know it will take time, but with more professionals joining, I am confident that it will be realized soon," says Zhao, CEO of Original Force, an outsourcing company that provides art production services for video games, television and films.

"Part of the reason why we have blossomed here is that the Nanjing government has been very supportive toward our cause and even offered us reduced rentals," says Zhao, who used to work in a local bank before he decided to seek his fortune in animation production and 3-D art.

Being a Nanjing native also eased many hurdles for Zhao. Unlike Beijing and Shanghai, the competition is less intensive, and it is easier to get support from the local government.

The colleges in Nanjing churn out nearly 100,000 graduates every year, and this ensures that the company does not suffer from any talent crunch.

Zhao's company currently employs more than 400 people in Nanjing and most of its clients have been big names such as Microsoft, Sony, Electronic Arts and DreamWorks.

Zhao's company is just another example of the innumerable companies that have reaped dividends from Nanjing's renewed thrust on developing its services industry.

According to the US-based market research company International Data Corp, the outsourcing market in China grew by 25 percent in 2011.

Nanjing is already one of the biggest bases in China for service outsourcing. What the city officials are doing now is to ensure that more steps are taken to boost the industry further so that it becomes the most viable long-term outsourcing destination, says Wang Tao, director of the trade service department in the Nanjing commerce bureau.

Top global corporations like IBM and Sodexo and leading domestic software companies like Neusoft and ChinaSoft International have already set up huge facilities in Nanjing.

Developing the outsourcing industry is also an integral part of the city's 12th Five-Year Plan (2011-15). The city has set a target to of generating more than $15 billion (11.5 billion euros) from outsourcing services by 2015. That also represents a three-fold increase from the $4.25 billion generated by the industry last year.

Though other destinations in China are also looking to shore up their facilities to grab a slice of the outsourcing pie, many say Nanjing leads the others when it comes to preferential policies for international firms.

Jiangsu Communications Services is one of the leading service providers in the information and media sector since its inception in 2007.

With expertise in providing services like design consultation, project construction and supervision, channel services and telecommunications, the company's clients include big names such as China Telecom, China Mobile, China Unicom, Huawei and ZTE.

"We offer package services and smart solutions for huge projects, services which are generally inaccessible for small companies," says Guo Yajin, deputy general manager of the company.

Jiangsu Communications Services' good performance in Nanjing has also helped it bag orders from companies in Indonesia and other areas. The Indonesian project is estimated to be worth 150 million yuan ($23.8 million, 18.28 million euros).

"By exporting high-end services, we achieve higher profits and the city goal of industry upgrade from manufacturing to services," he says.

Between 2008 and 2011, Nanjing's economy achieved an average annual growth of more than 12 percent. The service sector share of the overall pie has been steadily growing to 52.4 percent last year.

Contact the writers through xieyu@chinadaily.com.cn