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April 20, 2016

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Outsourcing in services sees rapid Q1 growth

CHINA’S service outsourcing industry grew faster in the first quarter of the year than it did in the first two months, the Ministry of Commerce said yesterday.

The value of deals signed by China’s service outsourcing firms rose 25.4 percent year on year to US$33.9 billion, said ministry spokesman Shen Danyang.

The annual growth rate over the first two months of 2016 was just 7.5 percent, he said.

The value of offshore service outsourcing contracts agreed in the quarter rose 44.6 percent year on year to 156.3 billion yuan (US$24.2 billion), accelerating from 28.5 percent in the January-February period.

Cooperation in service outsourcing with South Korea saw quicker growth, with the contract value surging 43.8 percent from a year earlier, Shen said, without elaborating.

Outsourcing of information technology-related contracts accounted for 52.2 percent of all deals fulfilled in the quarter, he said.

The value of contracts with countries included in the Belt and Road initiative rose 5.9 percent in the quarter, slower than it did in the first two months, he said.

China earlier described the nation’s outsourcing capabilities as a new engine for the service industry.


 

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