News

Nanjing unveils five model outsourcing zones

By Yang Cheng (China Daily)
Updated: 2009-06-22 07:50

A group of model outsourcing zones have evolved in Nanjing, a city once the capital of six dynasties in classical and now a benchmark for success in 21st century China.

Gulou district

Located in northwestern Nanjing, this district covers an area of 26.62 sq km and has a population of 688,300.

In 2008, it had a total GDP of 31.3 billion yuan and a combined revenue of 5.55 billion yuan. Its per-sq km GDP was 1.17 billion yuan, making it one of the top performers nationwide,

A total of 20,000 people are working in 380 software companies in the district.

These include two of China's top 10 software-exporting businesses, while five are national-level key software companies.

Some 20 universities, including Nanjing University and Nanjing Normal University are located within the area, which is also home to 58 research institutes and 42 academicians of both the China Academy of Sciences and the China Academy of Engineering.

Future developments include the establishment of a 113-hectare outsourcing industrial park.

This will feature dedicated zones for information technology outsourcing (ITO), business processing outsourcing (BPO), knowledge processing outsourcing (KPO), small office home office (SOHO), as well as research and development facilities.

Following its completion, the park is expected to generate a 30 billion yuan annual turnover and provide work for some 80,000 people.

Last year, the existing outsourcing operations in the communication, integrated circuits research, software, human resources and business service sectors generated some $120 million in the district.

Xuanwu district

Covering an area of 80.97 sq km, the Xuanwu district of central Nanjing has a population of 460,000. The area has a well developed information technology, cultural tourism and trade sector base.

Ranking among the top of Nanjing's districts, its domestic GDP and overall revenue have maintained annual growth rates of around 15 percent and 20 percent respectively. It has become the dominant area of the city's software sector and prides itself on its industrial environment.

In recent years, a number of leading software companies, including US-based Trend Micro Inc, Phoenix Technology and Taiwan-based Z-com have all established operation here. To date, the district is home to some 30 software companies, accounting for a quarter of those resident in the city.

In 2008, the district's total software outsourcing value exceeded $35 million. Its total output maintained a stunning annual growth rate of 100 percent between 2004 to May 2008.

The district is home to Jiangsu's largest professional software industrial bases, the Xuzhuang Software Industrial Base, and the Jiangsu Software Park - a national-level software industrial centre.

By the end of 2010, the Xuzhuang Software Industrial Base is expected to be established as an internationally-recognized software center, attracting some 400 enterprises with a total work force of 50,000. Its projected software sales values are estimated at 20 billion yuan every year, with an export value of $250 million.

Yuhuatai district

Located in the southwestern area of Nanjing, the district covers 134.6 sq km with a population of 330,000.

The district has a "green" coverage of 48 percent and forestry coverage of 24.5 percent. It has some 20 scenery spots, including the Yuhuatai Martyr Memorial Cemetery - a national 4A-level scenic area.

The district's Yuhuatai Industrial Base is home to a number of big-name IT research and development centers, including ZTE, Huawei, Neusoft and China Soft. In 2008, the district's total software sales amounted to some 15 billion yuan. Its service outsourcing sector's growth rate has surged by 1,400 percent over the past three years.

The district has well-developed industrial chains in the energy and metallurgy, IT communications, auto machinery, pharmaceutical, new materials, modern service and tourism sectors. This has led to Metro, B&Q and Baosteel's Meishan branch all opening up in the district.

The area is 3 km from the downtown area of Xinjiekou, 18 km from the Xinshengyu Port, the major inland foreign trade river port to the Yangtze River, and just 20 km from the Nanjing Lukou International Airport.

According to a development plan for the district, the Ningnan Modern Business Zone in the district will grow by an additional 500,000 sq m. By 2009, trade volume in the area is predicted to exceed 5 billion yuan.

In 2010, the district's new city-level business center will also come on line and send the projected trade volume figures surging above the 10 billion yuan mark.

Nanjing Hi-tech Industrial Development Zone

Located in the Pukou district, the Nanjing Hi-tech Industrial Development Zone has a planned area of 70 sq km and a current development of 17.5 sq km.

It was one of the first-batch of national-level and provincial-level hi-tech zones and is a member of the International Association of Science Parks.

The zone has been recognized as "China's Service Outsourcing Model Area" and a "National-Level Software Innovation Base".

Today a total of 360 software enterprises are based in the zone. Among them, 128 have passed the national software product and enterprise accreditation certification process, five are national key enterprises, five are among the nation's top 100 and five have seen their annual sales value reaching more than 100 million yuan.

In total, more than 1 billion yuan has been earmarked to develop the zone. This will include the creation of a 100,000-sq m office area, a 70,000-sq m animation and software service building, a 32,000-sq m software development center, a 7,000- sq m software training center, a 6,000-sq m dormitory building and a villa zone with 17 commercial and residential buildings.

A number of companies - including Nari, Guodian Nanjing and Lianchuang - have all signed up to be based in the zone.

So far three distinct groups of outsourcing enterprises have evolved within the area - IT, pharmaceutical and animation. The IT enterprises include Jiangsu Microsoft and Fujitsu-Nanda; the pharmaceutical players include Organon and BTOR; while the animation team consists of Afabei and Hong Ying.

By 2012, the number of hi-tech outsourcing enterprises based in the zone is scheduled to reach more than 100, including 20 key enterprises, 50,000 staff members and an annual industrial value of 20 billion yuan.

Jiangning Economic Development Zone

Set up in 1992, the Jiangning Economic Development Zone was designated as a national-level hi-tech development zone in 1997. It has already passed the ISO14001 environment accreditation and has been designated as a national-level power automation industrial park.

It has nearly 50 service outsourcing enterprises in a number of sectors, including software, engineering, automatic control, communications, computer engineering and marketing management.

After a number of years in development, the zone has attracted some 1,800 projects from 42 different countries and regions and has seen almost 1,000 businesses, including 40 of the world's Fortune 500 companies, relocate to its premises.

The zone is now set to link-up with the Jiangsu Software Park, the Zhongguancun International Service Outsourcing Industrial Park, the Jiangsu Innovative Cultural Park and the local airport industrial park to develop its outsourcing capabilities.

The Jiangsu Software Park is comprised of two industrial zones - the Jishan Base, set to be the home of some 150 businesses by the end of 2010, and the Ascendas iHub, which has a construction area of 52,000 sq m and a staff of 5,000 professional technicians.

The Zhongguancun International Service Outsourcing Industrial Park is a joint venture between the Jiangning Development Zone and the Zhongguancun Sci-tech Investment Co. It has been designed to cover some 30,000 sq m.

The Jiangsu Innovative Cultural Park is a joint venture between a number of local enterprises and the US Landmark Group. It is set to specialize in innovative culture, entertainments, hotels and exhibitions.

The Nanjing Airport Industrial Park, close to the Nanjing Lukou International Airport, has received an investment of 1.8 billion yuan. It has been conceived as a state-of-the-art investment platform with a planned development area of 50 sq km.

A total of 179 projects from 13 countries and regions have already been installed on the premises. Total investment has now reached $3 billion with an actual utilized foreign capability of up to $310 million.

The zone has taken the airport and logistics industries as its key sectors. It already has 10 projects, with a total investment of 6 billion yuan, lined up.

(China Daily 06/22/2009 page6)