News Column

New technology brings great change to service outsourcing

June 21, 2014

Zhang Xiaomin



Entrepreneurs and experts held a discussion on "How to realize the next golden decade of outsourcing by integrating new technology with business mode" on Friday during the ongoing 12th China International Software and Information Service Fair in Dalian.

New technologies such as big data, cloud computing, Internet of Things, mobile Internet, and the "smart city" are transforming the service outsourcing sector, said speakers at an ongoing software fair in Dalian, Northeast China'sLiaoning province.

"The service outsourcing sector has shown an obvious trend of transformation and upgrading," said Zheng Jinrong, an official with China'sService Outsourcing Research Center under the Ministry of Commerce.

According to him, outsourcing businesses once only provided technical service. Now their services have gradually expanded into various industries. Orders have shifted from single and short-term, to long-term ones. And the previous seller-buyer relationship has been replaced by alliance.

Against the background of the slow world economic recovery, the service outsourcing industry in China continues to experience rapid growth, becoming a major force for transforming the foreign trade development mode, adjusting economic structure, and promoting transformation and upgrading.

Statistics from the Department of Trade in Services and Commercial Services of MOC show, in 2013, China signed 167,424 contracts to undertake service outsourcing valued at $95.49 billion, up 55.8 percent year-on-year. The total implementation amount reached $63.85 billion, up 37.1 percent. About 1.065 million new employees were recruited into this sector. In the first quarter of 2014, 36,421 contracts valuing $24.57 billion were signed, up 55.9 percent against that of the previous year.

"With the rapid development of new technology, today's service outsourcing has already abandoned the traditional mode based on IT architecture and business process requirements," said Ye Ming, vice president of Yida Software New City Development, a leading software park and technical park operator in China.

"Instead, it fully relies on the application of new technology to improve efficiency, expand scale, shift to high-end aspects such as research and development and management, showing distinctive characteristics of platform, social, and intelligent design," he analyzed.

Meanwhile, the inherent boundaries among various industries keep being broken, different domains begin to inter-penetrate each other, divisions continue to be specified, and businesses are more focused on their core business. This provides a broader space and more opportunities for service outsourcing, Ye commented.

There are opportunities to ride the emergence of the new trends, said Marcel Greutmann, General Manager of Services Integration, IBM Corporation.

"Data is becoming the world's new natural resource. The emergence of Cloud is transforming IT and the business process into digital service. Thus enabling systems of engagement for enterprises," he said in a keynote speech at the software and information service outsourcing summit during the China International Software and Information Service Fair 2014.

Social, mobile, and data networking altogether are empowering people with more knowledge, enriching users through networks and spawning expectations for real value in return for their information with businesses they trust, he said.

Themed as "Smart City & Cool life," the CISIS 2014, currently underway, runs through June 22 in the northeastern coastal city of Dalian.


For more stories covering the world of technology, please see HispanicBusiness' Tech Channel



Source: China Daily: Hong Kong Edition


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters