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Business / Economy

China's service outsourcing growth accelerates in Q1

(Xinhua) Updated: 2016-04-19 17:03

BEIJING - China's service outsourcing industry expanded at a faster pace in the first quarter (Q1) of 2016 despite a slowing economy, data from the Ministry of Commerce (MOC) showed Tuesday.

Chinese companies inked service outsourcing contracts worth $33.9 billion, up 25.4 percent year on year, MOC spokesperson Shen Danyang told a press conference.

The growth rate accelerated from the 7.5 percent increase recorded in the first two months of the year.

Among the deals were offshore service outsourcing contracts valued at 156.3 billion yuan ($24.1 billion), jumping 44.6 percent year on year, compared with a 28.5 percent rise in the January-February period.

Cooperation in service outsourcing with the Republic of Korea saw quicker growth, with contract value surging 43.8 percent from a year earlier, Shen said.

Outsourcing of information technology-related contracts accounted for 52.2 percent of all deals fulfilled in Q1, rising 16.2 percent year on year.

Contracts carried out with countries included in the Belt and Road initiative rose 5.9 percent in value, a milder increase than in the first two months, Shen told reporters.

China's service outsourcing sector was described by the State Council as a "green industry" that will be a new engine for tertiary industry and a boon to increasing employment.

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