Delivered by Zheng Xiongwei, Prestigious economist and Global Executive Chairman of APCEO July 28th, 2012
Honorable Mr. Ablet Abdurishit, Vice-Chairman of NCCPPCC, Honorable Mr. John Winston Howard,Former Prime Minister of Australia,Global Co-Chairman of APCEO, Honorable Mr. Li Jiheng, Governor of Yunnan Province, Honorable Mr. Michael Aaron Oquaye, Second Deputy Speaker of Parliament of Ghana, Honorable Mr. Qiu Hong, Assistant Minister of Commerce, China, Honorable Mr. Luo Zhengfu, Chairman of Yunnan Committee of CPPCC, Honorable Mr. Wei Jianguo, Secretary-General of China Center for International Economic Exchanges, Former Vice Minister of Commerce of PRC, Honorable Mr. Zhang Tianxin, Party Secretary of Kunming, Honorable Mr. Zhang Zulin, Mayor of Kunming Municipal Government,
Distinguished leaders and guests, Ladies and gentlemen, good morning!
First of all, on behalf of international host of this summit, I express my heartfelt welcome once more to all the respectable leaders and guests attending the 5th Global Outsourcing Summit. Again I extend my appreciation to the tremendous contribution our Chinese host of summit has made. And I want to say “thank you” for the support of ministry of commerce of the People’s Republic of China, ministry of foreign affairs of the People’s Republic of China and government of Yunnan Province. It has been the 5th Global Outsourcing Summit. In the past five years, thousands of elites in global service outsourcing industry has made unremitting efforts with international dignitaries, Chinese government leaders, international officials and academic authority to promote corporation and development of global service outsourcing, strengthen regional economic cooperation and promote the restructuring of the world economy. They reach consensus and expand cooperation to achieve the goal.
In the special 5th year of Global Outsourcing Summit, we get together in the future center city of southern Chinese, also the center city of international service outsourcing, the beautiful and fantastic city of Kunming with “International service outsourcing: transforming development mode, promoting balanced growth and regional cooperation” as the theme of our summit. We work together to agglomerate consensus of the summit in the Statement of Kunming City on GOS. The statement as follows:
At first, the strategic effect of international service outsourcing on future global economic will be further strengthened, with the optimistic market prospects and enormous potential of offshore service.
Global service outsourcing can link the nations and regions which are geographically distributed but information resources complemented together, while the service outsourcing has the irreplaceable strategic effects that cost savings, strengthen core competitiveness and create high performance. It also has the important meaning that deepens the international labor division and optimizes the industrial structure. For the host country, international service outsourcing is kind of important emerging industry which promotes scientific and technological innovation, protects ecological environment and promotes white-collar employment. At the same time, it’s the only way for the service industry in developing countries to be in line with international standards, and make the local service industry more international. While international service outsourcing is an important driving force for economic restructuring and development, and it’s an important impetus to realize the value of philosophy and improve management level.
Currently, the focus of the global service outsourcing is stable development. Global service outsourcing continues to grow in 2011 and its total market size reached 820 billion dollars. As Mckinsey&Company predicts, global service outsourcing market will be over 150,000 billion dollars. While the internationalization degree of service outsourcing strengthening, offshore service outsourcing reached 102,600 million dollars in 2011, as predicted to be 150 billion dollars in two year. As we know, execution of the current global offshore service outsourcing only consists less than 0.15% of the global GDP, and execution of Chinese offshore service outsourcing consists of less than 0.4% of its GDP in 2011 though it’s the world's second largest offshore outsourcing undertake country.
As it shows, the development space of global service outsourcing and offshore service outsourcing is tremendous.
Secondly, the global outsourcing is becoming more focused on high-end service and spreading in more regions.
The intrinsic motivation of outsourcing has been shifting from reducing costs to enhance the core competitiveness of enterprises, while the content, transactions and pattern of outsourcing has been changing and innovating, and the employers demand more on host enterprises. The service which is knowledge-based, high value-added, high technology, innovative and personalized will be more competitive. The high-end, diversified, vertical trend in global service outsourcing market is becoming very obvious.
In the next years, the geographical layout of the service outsourcing industry will be further extended, the focus of the diffusion effect of the service outsourcing industry will be re-layout and transfer to second and third level cities to ease the cost pressure of the service providers in HR, information, resources and trading. An important opportunity for the development of service outsourcing in many second and third level cities is coming.
Thirdly, the international service outsourcing will be facing the challenges at both macro and micro levels.
At the macro-level, as the repercussion of financial crisis, the sovereign debt crisis in western countries has not been solved, people call for the return of the real economy and industrialization policy, the requirement for global economic trade rebalancing is strong, the pace of global technological innovation is slow and the trade protectionism seems headed. |