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Post time:2010-08-11Source:ChinaSourcingAuthor:ChinaSourcingEditor:Vicky
Overview of Jinan

Jinan, also known as “the city of springs”, is a famous historical and cultural city with over 2,600 years of history. Embracing mountains and rivers, Jinan is the political, economic, cultural, educational, science & technology, and financial center of Shandong Province. Located in the joint of Bohai Rim Economic Circle and Yellow River Economic Circle, Jinan has excellent conditions to participate in Northeast Asia Economic Circle.
As a “China’s outsourcing Base City” awarded by Ministry of Commerce, Jinan has developed high-level high & new-tech industry and information industry with large economic scale as well as a complete public software and hardware technical supporting platform. Besides, the city has set up the only one China International IT Innovation Cluster Zone (CIIIC), which provides a sound technical basis and vehicle for developing service outsourcing industry. Jinan has also established a complete transportation and communication system for service outsourcing industry.

Service outsourcing industry in Jinan

Goal of service outsourcing development in Jinan

Jinan has incorporated the undertaking of international (offshore) service outsourcing and the expansion of high-end service product export into its Eleventh Five-year Plan, and compiled clear objectives for the development of service outsourcing industry by 2010:
1. The revenue of software and service outsourcing business shall reach RMB 400 billion;
2. The export of software and service outsourcing shall reach US$ 500 million;
3. To attract 150 domestic and overseas enterprises to establish service outsourcing companies in Jinan; to have five large outsourcing enterprises with 3,000 to 5,000 employees and six enterprises with CMM5 certification;
4. To attract 35,000 undergraduates and have over 100,000 service outsourcing personnel.

Preferential policies of Jinan Government to encourage service outsourcing

To promote the development of the service outsourcing industry, Jinan has issued a series of policies including Opinions on Promoting the Development of Service Outsourcing Industry, Measures for Certifying Service Outsourcing Enterprises and Training Institutions (Trial),[link widoczny dla zalogowanych], and Temporary Administrative Measures on the Special Fund of Jinan for Service Outsourcing. Besides, in terms of service outsourcing information safety and intellectual property protection,[link widoczny dla zalogowanych], Jinan has issued various policies and regulations such as Opinions of Jinan Government on Strengthening Patent Work, Measures of Jinan for Appraising Patents (Temporary), and Plan for the Special Action of Intellectual Property Protection in Jinan. Besides, Jinan has also established Jinan Intellectual Property Report and Complaint Center to fight against various rights infringement behaviors. With regard to the characteristics of the service outsourcing industry, relevant departments are discussing the compilation of local regulations on personal information protection.
The subsidy for the training of service outsourcing personnel is as follows: the subsidy for fresh university graduates and graduates of colleges and secondary schools with no work experience may not exceed 50% of the training fee or RMB 2,[link widoczny dla zalogowanych],000 per person; that for pre-occupation training of new employees may not exceed 60% of the training fee or RMB 3,[link widoczny dla zalogowanych],000 per person. For customized personnel training, proper subsidy should be provided to service outsourcing enterprises.
Incentives are offered in different levels for service outsourcing enterprises in Jinan: RMB 50,000 for enterprises with an annual export between US$ 1 million and 3 million; RMB 100,[link widoczny dla zalogowanych],000 for enterprises with an annual export between US$ 3 million and 5 million; RMB 200,000 for enterprises with an annual export between US$ 5 million and 10 million; and RMB 300,000 for enterprises with an annual export above US$ 10 million. The incentives are issued in January every year according to the actual export value of the previous year provided by customs statistics.
Besides, there has been established the service outsourcing contribution award which offers RMB 50,000 - 200,000 as incentives to companies with outstanding contribution to the attraction of service outsourcing businesses.

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