Service outsourcing means that an enterprise subcontracts the business of information service, application management, and business process to a third-party service provider outside the enterprise to reduce the cost, optimize industrial links and lift its core competitiveness. It is a new form of the transfer of international service industry with transnational corporations as the main body at present; it is also a new growth point of the rapid development of Shanghai’s productive service industry. With a view to seizing the development opportunity and speeding up the shaping of industrial structure with service economy as the dominant factor, we hereby put forward the following suggestions on promoting Shanghai’s service outsourcing development.
I. Heighten understanding, make definite the targets and key points in developing service outsourcing
(1) Heighten the understanding of the importance of speeding up the service outsourcing development. Actively undertaking international outsourcing services is a major “handgrip” for Shanghai to strengthen on its own initiative its link-up with international economy and elevate its industrial energy level, an important channel for Shanghai to optimize the foreign trade structure and enhance the city’s international competitiveness, and an important move for Shanghai to step up the development of productive service industry and better serve the whole country.
(2) Make definite the targets of development. In the future years, Shanghai must firmly grasp the turning point of a new round of accelerating transfer of international service industry, to lay emphasis on developing offshore outsourcing services, speed up the formation of an industrial structure with service economy as the principal part, make great efforts to foster a batch of service outsourcing enterprises that have independent intellectual property rights, self-brand names and high value-added service capability, actively build up a state-level demonstration zone of service outsourcing represented by Pudong New Area and working hard to build Shanghai into one of the important bases of global service outsourcing.
(3) Determine the key points of development. Actively undertake internal offshore outsourcing of transnational corporations, vigorously attract the transnational corporations’ regional headquarters and R&D centers that not only undertake outsourcing services worldwide, but also can contract out outsourcing services to our country; consolidate the current service market, quicken the shift to the high-end service market, further expand service space; put stress on expanding software development outsourcing, R&D design outsourcing, logistics outsourcing and financial back-office services and such other fields, upgrade Shanghai’s service outsourcing energy level; devote much effort to cultivating several renowned local service outsourcing enterprises to make them become general undertakers of international offshore service outsourcing and general contractors of domestic services outsourcing
II. Focus on key regions, build up service outsourcing parks
(4) Carry out the affirmation work of Shanghai’s service outsourcing parks. Relevant municipal departments shall affirm qualified national- and municipal-level software industrial bases or other industrial compact zones and start the construction of a batch of Shanghai’s service outsourcing parks.
(5) Optimize the space layout. Take the construction of the national software export base in Pudong as the turning point to give a powerful impetus to the construction of the Zhangjiang software export, and biomedicine R&D and financial back-office service demonstration bases, the Jingqiao R&D design service demonstration base, the Lujiazui IT service demonstration base and the Waigaoqiao IT and logistics service demonstration base. Encourage all districts and counties to establish outsourcing industrial bases in qualified specialized industry parks and service industry compact zones to develop service outsourcing business, each having its own key point and giving full play to the gathering effect of regional specialized industry.
(6) Intensify the funds support for the construction of service outsourcing parks. All districts and counties shall give appropriate subsidies to the overseas and domestic renowned service industry enterprises’ headquarters and R&D centers stationed in the service outsourcing parks for purchasing land to construct, buying or renting office buildings for their own use. The modern service industry guiding funds established by the municipal and district/county people’s governments shall support the construction of key service outsourcing parks, and the building of a public service platform in the parks, and the purchase of large-size equipment and specialized software for lease to the enterprises stationed there shall be given support in a certain amount of fund.
(7) Actively build up the State-level service outsourcing demonstration zone. Take the pilot comprehensive matching reform in Pudong New Area as a turning point to actively strive for the State to launch pilot service outsourcing in Pudong New Area and other areas, making active exploration of the practice of first trial, first operation, in terms of extending the market access for certain sectors, perfecting the foreign exchange control procedures and creating new mechanism for training talents.
III. Support outsourcing enterprises to become big and strong, raising international competitiveness
(8) Further relax restrictions on the market access, giving enterprises engaged in service outsourcing previous examination and approval and convenience in industrial and commercial registration. With regard to business not involved in previous examination and approval, the industrial and commercial department shall, according to application made by the enterprise, authorize directly in its business scope “engaging in….in the form of service outsourcing.” Where previous examination and approval is needed, relevant departments shall simplify the examination and approval procedures, and quicken the tempo of examination and approval; after the enterprise passes the examination and approval of relevant departments, the industrial and commercial department shall authorize in its business scope “engaging in…in the form of service outsourcing” to facilitate the enterprise in undertaking outsourcing services according to international practice.
(9) Give service outsourcing enterprises the special funds support. Bolster this city’s service outsourcing enterprises in winning the R&D fund granted by the Ministry of Commerce to support export-oriented enterprises and the fund for medium and small-sized enterprises to open up the international market; make adjustment and optimization of the outlay structure of special fund to support this city’s local foreign trade, raising year by year the proportion of funds for supporting the development of service outsourcing enterprises.
(10) Implement preferential policies on service outsourcing enterprises. This city’s service outsourcing enterprises that comply with the requirements may, according to stipulations, enjoy 36 items of preferential policies on promoting the transformation of new and high-tech achievements, encouraging the development of software industry, stimulating self-innovation, etc. Where this city’s service outsourcing enterprises apply for international accreditation of service standard, relevant trade competent departments shall offer subsidies for accreditation expenses.
(11) Encourage service outsourcing enterprises to own independent intellectual property rights. List service outsourcing enterprises that comply with the requirements in Shanghai IPR pilot units, demonstration enterprises, and extend them corresponding support; put IPR projects in service outsourcing business that produce major social and economic returns under the category of government award so as to activate enterprises’ self-innovation.
(12) Encourage enterprises to carry out a brand strategy. Where service outsourcing enterprises launch the building of their own brand names, foster and develop famous export brands in compliance with relevant provisions set by the State and this Municipality may enjoy the favorable policy on export brand development funds arranged in foreign trade development fund; current outsourcing enterprise brands that have grown into scale and gained certain notability shall be put under protection.
(13) Improve the investment and financing conditions for service outsourcing enterprises. Support assets reorganization, acquisition, merger and the overseas and domestic listing of large and medium-sized service outsourcing enterprises; drive policy-related guarantee companies at the two levels of the municipality and district/county in actively providing medium and small-sized service outsourcing enterprises with guarantees for short-term fund loans.
(14) Shore up enterprises in opening up overseas and domestic markets. Continue to run well the yearly software outsourcing summit meeting, actively organize outsourcing enterprises to participate in domestic and overseas specialized conventions and exhibitions of all kinds, energetically launch publicity and introduction at home and abroad; make use of the overseas resources currently possessed by the government to give play to the enthusiasm of overseas students for establishing an outsourcing service undertaking network outside the territory.
(15) Provide enterprises with high-quality Internet service. Encourage main telecom operators to increase bandwidth, optimize data flow direction, provide multiple and individual services for service outsourcing enterprises, further improve Internet service quality; launch, with a definite object in view, publicity and training on Internet application knowledge to help service outsourcing enterprises select Internet service in line with their own business.
IV. Speed up the introduction and cultivation of talents, build highlands of service outsourcing talents
(16) Attract senior talents of service outsourcing to gather in Shanghai. List senior talents of all kinds in short supply and urgent need for service outsourcing in the Catalogue of Shanghai’s Talent Development in Major Fields; add points to their application for Shanghai residence permit, extend policy tilt in their application for household registration and offer convenience in providing apartments and simplifying exit and entry formalities for talents.
(17) Step up the cultivation of service outsourcing professionals. Guide colleges and schools of all kinds at all levels and training institutes in society to set up relevant specialties and courses to carry out multi-level, diversified service outsourcing specialized education.
(18) Strengthen occupational training for service outsourcing talents in short supply. Extend the use function of Shanghai talent development funds, bolster the establishment of comprehensive training and experimental bases for service outsourcing talents, featuring the combination of school and enterprise; make full use of, and elevate, the existing public practical training bases, devote great efforts to fostering the talents with practical skills and career creating ability that meet the needs of outsourcing enterprise development; expand the development of new occupations urgently needed by the service outsourcing sector, bring forth every year some vocational training projects in relation to the training urgently needed for this Municipality’s laborers to enter into the service outsourcing market, and listed under the government subsidy catalogue, and give subsidies for such projects as provided under relevant regulations.
(19) Practise the rewarding mechanism for service outsourcing talents. Give certain awards out of the talent development special funds at the two levels of municipality and district/county to middle and high-level talents who conduct service outsourcing business in this city’s service outsourcing parks over a year and make outstanding contributions for enterprise development, after their performance is reported and affirmed.
V. Perfect supportive services, create a good environment for service outsourcing development
(20) Establish a joint conference system. A deputy major in charge shall take the lead, with the participation of comrades in charge from the following departments and units: the Municipal Commission of Foreign Economic Relations and Trade, the Municipal Commission of Development and Reform, the Municipal Economic Commission, the Municipal Information Commission, the Municipal Science Commission, the Municipal Education Commission, the Municipal Finance Office, the Municipal Finance Bureau, the Municipal Bureau of Personnel, the Municipal Administration for Industry and Commerce, the Municipal Administration of Intellectual Property Rights, the Municipal Bureau of Statistics, the Municipal Administration of Labor and Social Security, the Municipal Bureau of Social Services, the Municipal Post and Telecommunications Administration Bureau, the State Administration of Foreign Exchange Control Shanghai Branch, The Shanghai Customhouse, the Pudong New Area Government, in establishing a joint conference system for boosting Shanghai service outsourcing development; and the joint conference office is located in Shanghai Municipal Foreign Economy and Trade Commission, having the charge of coordination and promotion.
(21) Give play to the role of trade associations. Encourage the establishment of a service outsourcing special committee in the Shanghai modern service industry federation to give better play to the trade’s internal role in internal information exchange, intermediary coordination, standard formulation, self-discipline normalization, market expansion and talents training.
(22) Quicken the creation of new governmental administration patterns. Further formulate and improve rules and regulations for promoting service outsourcing development, perfect the management norms for relevant industries and administrative law enforcement mechanisms, impel the trade credit management, standardize the market order and improve the trade service quality.
(23) Intensify management and service for IPR protection. Set up the municipal IPR report and complaint center, severely punish IPR infringements and illegal acts according to law. Through the building of an IPR public service platform, provide service outsourcing enterprises with convenient, rapid and specialized service of information about the creation, protection, management and application of IPR.
(24) Establish a statistical indicator system for outsourcing services. According to the recent State statistical standards and in line with Shanghai’s reality, study and establish a statistical indicator system reflecting the character of service outsourcing development, and try out the service outsourcing statistical system; enhance the analysis of service outsourcing development trends to provide market information service for service outsourcing enterprises.
All relevant municipal departments and all district and county governments shall, in compliance with the requirements set out in these Suggestions, further change concepts, unify thoughts, heighten understanding, and waste no time drawing up implementation rules, so as to ensure these Suggestions are really carried out.