The Third Growing Polar of China captivates international outsourcing

The First Global Outsourcing Summit held its grand opening in Binhai New District in Tianjing on December 11, 2007. Delegates in the summit called upon that governments around the world should actively promote international outsourcing. At the same time, the opening of the summit in Tianjin displayed to the world the achievements and development plans of service outsourcing in Tianjin and international oursourcing organizations' confidence of Tianjin's dvelopment in the field of service outsourcing. "The First Global Outsourcing Summit will bring great opportunites and  vitality to the host Tianjing", said Zheng Xiongwei, Executive Chairman of Asia-Pacific CEO Association.
Why are international organizations so confident about the future of Tianjin's service outsourcing? There are mainly three reasons as follows:
Firstly, the hardware and software for developing headquarters economy in Tianjin are becoming maturer and maturer. At present, Tianjin is one of the six national software export bases. In 2006, it was designated as "Chinese Service Outsourcing Base City" jointly by Ministry of Information Industry, Ministry of Commerce and Ministry of Science and Technology. Tianjin Economic and Technological Development Zone was recently designated as "Chinese Service Outsouricng Training Center". Tianjin government has attached great importance to promoting the development of service outsourcing and has formulated a range of beneficials policies. In March, 2007, Tianjin government issued a policy to promote the development of service outsourcing. It was said that from 2007 to 2010, Tianjin government would spend 50 million yuan each year mainly on service outsourcing training projects and training institution building projects for service outsourcing training. In June, Tianjin New Technology Industrial Park, Tianjin Economic and Technological Development Zone and Tianjin Port Bonded Zone were designated "Tianjin Service Outsourcing Demonstration Zones" to encourage the establishment and development of service outsourcing zones. Moreover, a series of forums and symposiums concerning service outsourcing were conducted recently , which created a solid foundation and nice environment for the boom of Tianjin's service outsourcing. This summit particulary has made Tianjin become the most shining international outsourcing supplier in the world.
Secondly, the opening of the summit has made Tianjin stand out in the world, which means a shortcut for the development of Tianjin’s service outsourcing. A real cooperation platform has been built through the round-table conferences- "Strategic Orientation of Leading Cities in the International Outsourcing Sector" and "Brand Strategy and Capital Operation of Leading Outsourcing Suppliers" and negotiations bewteen outsourcing suppliers and buyers. A number of international leading outsourcing enterprises has showed great interest in investing in Tianjin, such as Nokia Group, ING Group, Veolia Environment Group, New World Development Company Limited, Bank of Montreal, Carrefour Group, Matsushita Electric Industrial Co., Ltd, Morgan Stanley, Electricite De France,etc.
Thirdly, the development of Tianjin service outsourcing not only meets the internal demands of a new pattern of growth,  upgrading of the industrial structure and the country's comprehensive economic policy test, but also embody the regional advantages of Bohai Sea Area. Compared with the other economic areas, Bohai Sea Area has five comparative advantages: 1) extremely advantageous geographical location; 2) rich natural resources; 3) convenient transport facilities; 4) good industrial base and technology; 5) strong urban agglomerations. It is for the above comparative advantages that Tianjin has build a strong market environment to attract international outsourcing suppliers.
Tianjin has become the center of attention since the summit was held. This big event has been fully reported d by media from all around the world, such as People's Daily, Xinhua News Agency, China News Agency, CCTV, Economic Daily, Guangming Daily, the Central People's Broadcasting Station, China Radio International, International Business Daily, the China Business Times, the Economic Observer, First Financial Daily, Tianjin Daily, Tianjin TV, Reuters, Phoenix TV, European Union Times, International Daily News, and Chinese government wedsite, Xinhua net, China's economic network, Sina.com website, Sohu.com website, China outsourcing website,etc.
Thanks to Global Outsourcing Summit, Tianjin is now on the fast track to boom. Internastional outsourcing agencies are also showing their favour to this third growth pole of China. We believe that, under the guidance of this international conference, Tianjin will inevitablely form new advantages of international economic cooperation and competition in the situation of economic globalization. More and more outsourcing enterprises will for sure settle in Tianjin Binhai New District.

The second economic globalization

Date: 11th.Dec.2007
Place: Renaissance Tianjin TEDA Hotel & Convention Centre

The Compere: Respectful leaders, ladies and gentlemen, good morning! The first Global Outsourcing Summit is here to open soon, first let’s extend our gratitude to the holders, they are Tianjin Municipal People's Government, Asia-Pacific CEO Association and Global Outsourcing Center. Also let's show the warmest welcome to more than 500 domestic and foreign guests!
Witnessed as a significant year, 2007 has brought us the second wave of economic globalization which showed us that the world is flat. Yes, it is true: the world has turned flat because of global outsourcing that is a new focal point of the world. More and more people come to recognize that the greatest business opportunity in this century lies in global outsourcing in which people from different side of the earth can cooperate to reach the same goal and to create lots of miracles!
Today such miracle creator is focused in Tian jin. Okay, my dear friends, now let's welcome the opening of the first Global Outsourcing Summit!
Tian jin leaders attended here today are governor of Tianjin Municipal People's Government, Mr.Dai Xianglong, deputy mayor of Tianjin permenant committee, Mr.Huang Xinguo, director of Binhai area and member of Tianjin permenant committee, Mr. Gou Lijun, secretary of Tianjin Municipal People's Government, Mr. He Ronglin and director of Tianjin permenant committee, Mr. Li Quanshan.
Leaders from Chinese ministries and commissions include assistant of head of Chinese commerce department, Mr. Chong Quan, chief of high-tech and indutralization section of Chinese Science and Technology department, Mr. Gen Zhanxiu, deputy chief of product section of Chinese info industry department, Mr. Chen Ying.
Guests from abroad include former premier of Australia and chairman of Asia-Pacific CEO Association, Mr. Bob Hawk, former president of France house of councilors and european president of Asia-Pacific CEO Association, Mr. Christine. Carol, global operating president of Asia-Pacific CEO Association and board of director of Global Outsourcing Center, Mr. Zhen Xiongwei, and other CEOs and outsourcing expertises.
Now let's invite the host Mr. Dai Xianglong to give us a speech!
Dai Xianglong: Respectful Mr. Bob Hawk, honorable guests, dear friends, ladies and gentlemen, it is our honor to hold the first Global Outsourcing Summit here today, first of all, on behalf of Tianjin government, I'd like to show the warmest welcome to all of guests from 20 countries, and extend our sincere gratitude to the organizors, and particularly I want to send our respect to Mr.BobHawk, who made great contribution to promoting communication and cooperation between Australia and China and to the opening of this summit as well.

Today I have 3 major points to share with you.
No.1: The economic globalization has brought new opportunity for global outsourcing. With the unavoidable development of economic globalization and particularly with the fast spread of info-tech since 1990s, industrial division becomes more and more diversified, and the call for lower cost due to global competition is louder, therefore more and more international companies choose to outsource their noncore business which creates a new industry---Service Outsourcing. Service Outsourcing can not only improve the operating efficiancy of the original company, but also bring benefit to the service taker.
Global Outsourcing has embraced large scale market in recent years. It's said that the total volume in global outsourcing market increased from $150 billion in 2001 to $ 480 billion in 2006. There are four new trends in global outsourcing market.
Firstly, the trade scale is being enlarged increasingly which brings more and more positions in outsourcing industry. Since 2003, the average volume of the top 10 global outsourcing companies reached $ 2.34 billion, with highest $ 9 billion of single trade amount. While during the past 3 years, more than 400 thousand of white colar positions have been transferred abroad.
Secondly, outsourcing business is diversified from basic info outsourcing to business process outsourcing at higher level.
Thirdly, outsourcing carriers are not limit to developed countries and some large corporations any longer. There are more carrier companies in China, India, Brazil, Russia, etc.
Lastly, there will be more Offshore Outsourcing. It's predicted that within the following 5
years, outsourcing of white colar work will increase by 30%; outsourcing of global Internet's key area will increase by more than 45%; and more than half of occident companies will resort to offshore outsourcing. 
My second point is that Tianjin has some new advantadges for developing global outsourcing.
As the largest coastal city in north China, Tianjin was the trade center of north China historically. In recent years our economy increases by 15% each year. While the Chinese government has decided to develop Binhai new area as the third economy engine followed Shenzhen and Shanghai Pudong area. According to this strategy, we will construct Tianjin as an international port and ecological city which is also the economic center of north China. In order to achieve the above goals, Two Ports & Two Railways will be built. After the two ports are completed, Tianjin port will become the 6th largest port of the world. By the time of Olympic Games, the two high speed railways will be completed. only 25-30 minutes is needed to travel between Tianjin and Beijing, and there will be one train in each 5 minutes. Besides, the reconstruction ofTianjin airport will also be completed. We also set up a 10 million tons of oil refining project, and launched the load rocket project. A contract has been signed by president of Singapore to build up an ecology center.
With all of constructions mentioned above, several new advantadges have come to Tianjin.
Firstly, as one of the 11 outsourcing cities, we have strong basis for outsourcing development with almost 70 outsourcing companies; Secondly, we have excellent software industry basis. There are 30 software enterprises at present with 10 thousand employees, 43% of average increased sales, and 107% of average export increasement. Thirdly, we have possessed advanced Internet platform with 2000 G of core info exchange volume and the fast spread of electronic government and enterprises; Fourthly, we have huge potential market with the entrance of many international enterprises; Fifthly, we have rich human resource with 45 colleges and universities, 3 national software normal schools and 5 local ones. Besides a national outsourcing training center will be established; Lastly, the government has made us favorable policies with a $ 5000's annual fund for outsourcing development. 
Well my last point is that we should find new ways of developing global outsourcing industry. Here I have 4 methods to share with you.
No.1: To full develop the three outsourcing areas as demonstration including Binhai Hi-tech new area, developing area and the area in bond.
No.2: To build Binhai Hi-tech industrial area and Dongjiang area in bond with high starting level. 
No.3: To develop both nearshore and offshore outsourcing. While consolidating the cooperation with Japan and Korea, we should also start business with Europe and America.
No.4: To create favorable conditions for outsourcing enterprises, for example, to offer favorable tax policy and punish violation of intellectual property, etc.
That’s all I want to share with you. I hope more and more friends will join in Tianjin's development. Let's embrace mutual benefit and open up together!
The Compere: Thanks Mr.Dai Xianglong for his passionate speech, now let's welcome Mr. Bob Hawk for his speech.
Hawk: Dear guests, ladies and gentlemen, first of all, congratulations to Tianjin Municipal People's Government, Asia-Pacific CEO Association and Global Outsourcing Center for holding this summit, and thanks for your invitation! My topic today is about the global economy integration. First, I'd like to express my opinion on outsourcing industry.
To be frankly, I have no specific knowledge about outsourcing industry, what I know is that the global outsourcing trade volume reached $ 120 million trillion which overpassed Australian GDP, and it will increase at 30-40%. In my opinion, outsourcing indutry is based on a basic economic principle---the principle of competitive advantadge. There is an example of miracle in Chinese economy. On Aug.19th, a medical enterprise in Wuxi city was publizised with initial price of $ 40, after 6 weeks, its price was doubled! How did it make it? The answer is it has offered outsourcing service to many countries. There are similar miracles happened in India. While China and India have something in common, that is both have created a favorable environment for outsourcing development, for example, favorable tax policy and intellectual protection law, also both of them have cheaper labor force. Therefore there will be lots of opportunities in Tianjin as mentioned by Mayor Dai.
Then I'd like to say something about the background. In my view, the background is the outsourcing economy being integrated. We have to pay attention to such issues because China has become one of necessary members of this economic utility. Since its establishment in 1949, 48 years has passed. In the first half period, Chinese economy was highly planned; then came the second revolution in 1978, from then on China began to develop its market economy and open up. During this period, Chinese economy has developed at high speed with 10% of average increase. Now China is the third largest country in trade; its impact on global economy is stronger and stronger. Are there any obstacles that might hinder its future development? The answer is Yes, just as mentioned in one recent speech of President Hu, China faces lots of challenges. 
I have not enough time to analyze each challenge mentioned by President Hu, thus I will only focus on one issue---the problem of sustainalbe environment. This issue has been paid attention by both China and Australia, two countries with completely different systems. China is right to point out that it will take no responsibility for the warming global climate, for it is the developed countires developed during the past 200 years that produced so many green house gases. As a  climate proffessor said, we should prevent the environment from destroyed at the very begining before disasters take place.
In 2001, Chinese GDP increased by 200% with larger energy demande, for example, more vihicles need more oil. As a result, the air has been polluted which consequently decreased the average age of Chinese people. Of course there is also environment friendly success in economy development which greatly encourages Chinese leaders. Another two effects brought by the warming whether are the melting of the frozen river and Chinese food industry. As mentioned by some Chinese leaders, the warming whether will impact 10% of Chinese total income and will threaten its food safety with large area of pant field being polluted; More money will have to spend on dealing with pathological changes; the water evaporation will inrease by 7% which will bring more challenges on dealing with drought. All of these problems are global economic issues.
On a conference held in Paris, we were discussing about environment protection which was said to be the responsibility of all countries. While I think the developed countries should take the major responsibility, for they produced the green house gases in the first place. Effective laws and policies should be made to cope with the present environment problems.
At last, let's work together shoulder to shoulder to solve the environment problems, for only with cooperation can we take care of our only home---the earth.
Thank you!
The compere: Thanks Mr. Hawk, this old friend of Chinese people who has paid close attention to Chinese economic development for a long time. Next, let's invite Mr. Chong Quan, assistant of head of Chinese commerce department.

1st Global Outsourcing Summit held its opening in Tianjin

The first Global Outsourcing Summit which was co-sponsored by Tianjin Municipal Government,the Asia-Pacific CEO Association and the International Outsourcing Center held its opening in Binhai New District in Tianjin on December 11, 2007. The theme of this summit is International Outsourcing, the second integration of global economy? Chinese central government leaders and offocials, renowned experts in international outsourcing, business leaders from famous enterprises had deep discussions about outsourcing theory, politices, stragies, experience, etc.  Rt. Hon. Robert J. L. Hawke, former Prime Minister of Australia and the Global Chairman of the Asia-Pacific CEO Association, Dai Xianglong, Major of Tianjin Municipal Government and Chong Quan, Assistant Minister of Ministry of Commerce respectively delivered a speech in the opening ceremony.
On behalf of Tianjin Municipal Government, Major Dai Xianglong extended the participants his warmest welcome and expressed his sincere thanks to the Asia-Pacific CEO Association and the International Outsourcing Center for their great efforts. conomic globalization has brought new opportunities for the development of international outsourcing service. In recent years, the rapid expansion of international outsourcing service has become a huge market for a certain scale. Global outsourcing service is experiencing a new trend of development in which the scale of transaction continues to widen; business scope is continuously expanding; groups get involved is increasing significantly and , offshore styles are being strengthened? Major Dai mentioned.
 Tianjin has many advantages with regard to the development of  international outsourcing service. The development and opening up of Binhai New District Binhai has provided wide space for the development of international outsourcing service. Tianjin has established a firm industrial foundation for international outsourcing service. It also has advanced communications and network information platform. Its huge potential market, rich human resources, as well as a soft policy environment make Tianjin become one of the base cities for outsourcing service in China, which creats good conditions and lays out solid foundation for outsourcing service development? said Major Dai Xianglong.
Tianjin will try its best to become a leading base of outsourcing service in the world. firstly, build outsourcing service bearing zones with full functions and advanced facilities. Set up three major outsourcing severices model gardens as quickly as possible-Binhai high-tech zones, development zones and bonded zones. Highly establish outsourcing service gathering zones such as Binhai High-Tech Industrial Park, Dongjiang Bonded Port and so on. Secondly, fully develop inshore and off shore outsourcing. Secure the outsourcing service business with Japan and Korea and expand into European market and US market. Meanwhile, accelerate the development of software development outsourcing, business process outsourcing, research and development outsourcing and creative outsourcing service in key industries such as shipping, logistics, finance, insurance, education and medical treatment. Thirdly, train and bring in outsourcing service talents and encourage senior outsourcing service personnel to do business in Tianjin. Finally, creat a comfortable environment for development and provide favorable policies, convenient service and flexible foreign exchange management for outsourcing service enterprises. Tianjin will attract and establish hundreds of outsourcing enterprises by 2010 and outsourcing business and exports will be twice that of 2005 ?, Mayor Dai also said.
outsourcing service has become an important indicator of economic globalization and the focus of the global industrial transfer. 95% of Global 1000 companies have developed outsourcing service strategies to promote the expansion of global outsourcing service market. As a modern high-end industry with characteristics of high technology content, less pollution, and strong ability to absorb employment, outsourcing service is the key way to promote the industrial structure and competitiveness. China government has attached great importance to the development of this industry. Outsourcing service has been regarded as a mean of economic development transformation, an effective way to stimulate the modern service industry? Chong Quan said in his speech, we will continue to improve investment outsourcing service operating environment, expand the financing channels, establish public technical information platform, set up incentive policy system, strengthen protection of intellectual property rights so as to creat a heathy environment for outsourcing service development and achieve a historical transform from ade in China?to erviced in China? ?BR>Roundtable confernece on trategic orientation of leading cities in the international outsourcing sector?and rand strategy and capital operation of leading outsourcing suppliers?were also held in the summit. Issues such as the trend of international outsourcing development, multinational companies?outsourcing talent strategy, China international outsourcing development strategy, dissemination of information about the main international outsourcing projects, strategic orientation of leading cities in the international outsourcing sector, brand strategy and capital operation of leading outsourcing suppliers were deeply discussed.
The opening of this conference will further promote global integration and upgrade global service industry. At the same time, it will help improve the competitiveness of the service industry in Tianjin and build a new advantage over the international economic cooperation and competition under the situation of economic globalization.
Vice Major of Tianjin Municipal Government Huang Xingguo, Secretary General of Tianjin Municipal Government He Ronglin, former French president General Christian Quesnote and governors and officials from other cities were present at the opening ceremony. Besides, representatives of many famous companies also attended the conference, such as part of coporations from Global 500 and Forbes 2000 from eighteen countries, leading outsourcing service enterprises, international outsourcing supliers, etc. Well-known international economist Zheng Xiongwei made a concluding statement in the morning and presided over the symposium in the afternoon.

The Global Outsourcing Summit Helps Tianjin Get Ahead

The First Global Outsourcing Summit which was the highest and largest summit in the outsourcing domain in the world, held its grand opening in Binhai New District in  Tianjing on December 11, 2007. In the summit, 200 outsourcing suppliers and buyers, experts and scholars had deep discussions on important issues such as the trend of international outsourcing development, multinational companies' outsourcing talent strategy, China's international outsourcing development strategy, information on important international outsourcing projects, strategic orientation of leading cities in the international outsourcing sector, brand strategy and capital operation of leading outsourcing suppliers. A big success of this summit in Tanjing shows that Tanjing is making great efforts to march in the forefront of China and the world in the field of service outsourcing .

As the highest outsourcing conference in the world, the grand opening of the summit has gained great supports from political and  business circles, media as well as academics at home and abroad. More than 500 people attended the conference, including the Rt. Hon. Robert J. L. Hawke, former Prime Minister of Australia and the Global Chairman of the Asia-Pacific CEO Association, former French president General Christian Quesnote, Zheng Xiongwei, Executive Chairman of Asia-Pacific CEO Association and Director of the International Outsourcing Center, part of Fortune500 companies, leading enterprices in the field of service outsourcing , some relevant international economic organizations, representatives of domestic and overseas outsourcing suppliers and buyers. Major Dai Xianglong, Tianjin Municipal Government attended the opening ceremony and delivered a speech. Chong Quan, assistant minister of Ministry of Commerce, Huang Xingguo,Vice Mayor of Tianjin Municipal Government and Secretary General He Ronglin were also present at the summit.
 
People from all around the world can sense Tianjin's leading pace by its successful opening of the summit.

First of all, the great convocation of the conference has made people of the world realize asll kinds of advanced and favorable policies provided by Tianjin. The theme of this summit is "International Outsourcing, the second integration of global economy". As a rapidly development hub for finance, trade and foreign direct investment, and an authorized base city for service outsourcing, Tianjin has formulated a range of beneficials policies on land, tax and human resources in preparation for its increasingly important role in the outsourcing sector. We can say that the global outsourcing summit will make Tianjin become a true leader.

Secondly, Tianjin is leading the way in the improvement of various development initiatives. Only if one keeps standing in the front, can he be suceed. Tianjin, in this sense, is successful. In order to accelerate the development of international services, all circles of Tianjin will make efforts after the summit as follows: (1) Build  service outsourcing  bearing zones with full functions and advanced facilities. Set up three major severice outsourcing deminstration zone as quickly as possible-Binhai high-tech zones, development zones and bonded zones. Highly establish service outsourcing  gathering zones such as Binhai High-Tech Industrial Park, Dongjiang Bonded Port and so on. (2) Fully develop inshore and off shore outsourcing. Secure the service outsourcing  business with Japan and Korea and expand into European market and US market. Meanwhile, accelerate the development of software development outsourcing, business process outsourcing, research and development outsourcing and creative service outsourcing in key industries such as shipping, logistics, finance, insurance, education and medical treatment. (3) Train and bring in service outsourcing  talents and encourage senior service outsourcing  personnel to do business in Tianjin. (4) Creat a comfortable environment for development and provide favorable policies, convenient services and flexible foreign exchange management for service outsourcing  enterprises.

Thirdly, Tianjin is solving common problems of China's service outsourcing  in a leading way. Always in the front and beginning with key factors like intelligence, commitments and actions, Tianjing is struggling to find its success. The efforts above mentioned are remedies for issues discussed in this outsourcing summit: multinationals outsourcing talent strategy, China's international outsourcing development strategy, strategic orientation of leading cities in the international outsourcing sector, brand strategy and capital operation of leading outsourcing suppliers and so on.

Finally, it has provided an advanced opportunity of service outsourcing  cooperation for Tianjin. During the tea break in this conference, Mr. Qu Jiadong, Director of Xutian Developent CO.,Ltd had a nice talk with other conventioners. Talks concerning finance and economics like that could be seen all around. Participants communicated with each other during the tea break, which was a nice opportunity to promote their own company or products. This international outsourcing summit made possible that Tianjin's industries for the first time had a face-to-face talk with international leading outsourcing suppliers. It helped them have a new recognition of their own status and lay a foundation of unleashing their potential and  being a bellwether of China's service outsourcing .

Moreover, thanks to the positive influence of this summit, the demestic economists have a deep interest in the study about the development prospects of Tianjin's service outsourcing . They are making a research on Tianjin's service outsourcing  development in the perspectives of effects of policies, geographical location, human resources, capital input , investment environment, and supporting services, etc. so as to re-estimated environmental quality and status of Tianjin service outsourcing  development.

Success depends on choice and initiative. Under the guidance of this international conference, the service outsourcing led by Tianjin Municipal Governmentwill be a golden key to the "Gate of Dream" of China's new economy.