Xi'an, the capital of Shaanxi province in north-west China, hopes to join hands with Hong Kong enterprises in information technology-related fields, as it bids to win service outsourcing orders in the international market.

The fifth International Service Trade conference initiated by the Ministry of Commerce and the Hong Kong Trade and Development Council (HKTDC) kicked off in Hong Kong on Thursday, which features the city of Xi'an this year, bringing delegates from both sides to the table.

According to figures from the Ministry of Commerce, in the first nine months of 2011, the mainland's services outsourcing industry signed offshore contracts worth $12.69 billion, up 212 percent over the same period last year. Service outsourcing refers to moving some non-core tasks offshore, so as to save time, money and infrastructure. Typical tasks include data entry, data conversion, software development, website designing, etc.

"Against the backdrop of the global financial crisis, China's service outsource industry has demonstrated strong growth prospects," said Lan Tianshan, service trade bureau chief at the Ministry of Commerce.

Stella Poon, services promotion manager at HKTDC, said that China has set the blueprint of transforming its economic growth pattern in its 12th five-year plan, and that Hong Kong, as a hub for information technology, has a role to play in this process by seeking cooperation with the mainland.

Ning Yongjie, bureau chief of IT development and service trade at the Commerce Bureau of Shaanxi province, said that Hong Kong has become a major place for the global service outsourcing industry thanks to its geographical advantages and international expertise.

He expected the working model of "Hong Kong winning orders, mainland delivering orders" to further expand.

Ning emphasized that cultivating the services outsourcing industry has become an important policy initiative for Shaanxi province, with Xi'an at the forefront. Existing research and development competence, a talent pool ensured by quality universities, and lower living costs are among the merits Xi'an can boast, said Ning.

Local companies have already set foot in Xi'an. One example is PCCW, Hong Kong's biggest phone company. In May 2010, PCCW Solutions, its IT and business process outsourcing arm, opened an outsourcing development center (ODC) in Xi'an, the fifth ODC on the mainland.

Xi'an has a strategic location, well-established infrastructure, rich human resources and preferential government policies, enabling it to act as a key national outsourcing base in north-west China, PCCW said then.

joyli@chinadailyhk.com

China Daily

(HK Edition 11/04/2011 page2)