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



Located in the west of Heilongjiang province and the center of the Songnen Plain, Daqing is the largest oil production base of China and an important base of petroleum chemical industry. Oil has given birth to this city and contributed to prosperity of this resource-based city. A large number of oil cultural and historical heritage sites have created a unique city of Daqing. Covering an area of 21 thousand sq km, Daqing has a population of 2.734 million. In 2007, Daqing was approved by the State as a National Experimental Sustainable Development Zone. Daqing is also one of the first 5 pilot cities for informationization, playing an important role in revitalization of the old northeast industrial base.



Service outsourcing industry in Daqing



On December 3, 2007, Daqing Service Outsourcing Park was jointly designated a model park of service outsourcing in China by the Ministry of Commerce, Ministry of Industry and Information Technology, and Ministry of Science and Technology. As a resource-based city, Daqing focuses its effort on the development of service outsourcing in petroleum engineering technology,outsourcing and globalization, software development and information processing service.
According to Daqing foreign trade authorities, at the end of October 2008, Daqign Service Outsourcing Park had 77 service outsourcing companies. It is estimated that Daqing will gain RMB 3.86 billion in sales revenues in 2008, with RMB 700 million from offshore service outsourcing.
1) Petroleum engineering technological service. With the support of the technological and labor advantages of large companies such as Daqing Oilfield and Daqing Oil Administration, Daqing will further expand its international market share by utilizing its international advanced technologies such as high-definition seismic exploration, watered-out logging zone data processing etc. Daqing also attaches great importance to the development of technical support and service in sectors such as geographical prospecting, drilling, logging and extraction related to oil software development and oil extraction. Daqing has already provided outsourcing service to over 20 countries in Central Asia, Southeast Asia, South America, North America, Middle East and North Africa, such as service in exploration, logging, logging data collection, processing and interpretation.
2) Software development. Daqing Software Park, supported by the National Torch Program, will make effective use of its cluster effect to actively support leading companies, such as Jinqiao Information,Outsourcing Solution For Retail Goods, Sunway Soft and Huachuang Tongruan to develop application software in business process control, configuration control, process optimization, logistics management, financial auditing,custom software development, education and entertainment, and build the park into a software export base in northeast China. In software development and information processing, the park has provided software development service in automation control, simulation, production management, video and games for the industries like petroleum chemical, education, audit, healthcare and entertainment.
In addition, Daqing has many research agencies and professionals as well as pilot test bases engaged in software development, engineering design and industrial control system, forming a complete development system with participation of corporations, academic institutions and research agencies. Now Daqing has registered over 400 companies in the fields of software development or system integration. Among them, 29 have been certified as software companies, 6 have passed system integration certification, and 1 company has passed CMM/CMMI3 certification. The registered software products totaled 48. Daqing now has a number of software products with proprietary IPR.
3) Information processing service. Led by M&Y and Mindwell, the industry of information service in data entry,Localization Software, graphic processing, call center, software service, background support, information engineering supervision, information system security testing and IT consultation has achieved substantial results. Developing petroleum and petroleum chemical engineering consultation, Daqing is also utilizing its labor and technological advantages to provide outsourcing service in accounting, auditing, law, HR, evaluation, property transaction and market research to diversify service and trade so that its service trade can be growing faster and more internationalized. Daqiing has already provided information processing services such as data entry and graphic processing to countries and regions like Australia, UK,Print solution outsourcing, US and HK. Daqing has also achieved moderate development of service outsourcing in financial and insurance background support, management consultation, design and production, HR and financial agency. Dominated by petroleum engineering technological service, and driven by software development, information processing and specialized service, Daqing’s service outsourcing pattern has taken shape.



Goal of service outsourcing development in Daqing



The 11th Five-year Plan period will be the key time for Daqing to develop service outsourcing. The principle of Daqing to develop service outsourcing is to exploit its comparative advantages and highlight its petroleum characteristics on the basis of its actual situation. Daqing will try to build itself into a service outsourcing base characterized by petroleum engineering technological service, software development and information processing service, with well-developed infrastructure and industry clusters as well as a beautiful environment. By 2010,
1. Daqing will have reaped RMB 5 billion revenues from service outsourcing.
2. Daqing will have had 150 service outsourcing companies, with over 30% of them gaining over RMB 10 million revenues from service outsourcing.
3. The total employment of its service outsourcing industry will have reached 20 thousand people.
By 2015, service outsourcing companies will have reached 300, with RMB 15 billion revenues.



Preferential policies of Daqing Government to encourage service outsourcing



Daqing has been listed by the State as an oil-based city and a pilot city for economic transition. Heilongjiang province has designated Daqing as the center of the Hadaqi Industrial Corridor. CNPC is going to build Daqing into China’s largest polyolefin production base, world-level propylene derivatives and oilfield chemicals bases and China’s petroleum chemical equipment manufacturing and technology base. In the context of national revitalization of the northeast industry, all this will provide incentives to sustainable development of Daqing. Daqing has formulated a number of documents to improve its legal environment, standardize administration, enhance protection of IPR so as to build an enabling environment for investment in service outsourcing.
To support the development of service outsourcing, to improve the business and financial service environment, Daqing government has Issued a number of outlines such as Opinions on Accelerating Development of Service Outsourcing and Provisional Measures to Promote Development of Service Outsourcing to specify preferential policies for service outsourcing growth. The companies based in the Daqing Service Outsourcing Industry Park will enjoy special preferential policies apart from the incentives granted by the State or the province to revitalize the northeast economy, facilitate economic transition of resource-based cities, encourage development of national hi-tech technology industry park and promote development of Hadaqi Industrial Corridor.
In accordance with Provisional Measures to Promote Development of Service Outsourcing (passed by the 3rd session of the 8th government congress on April 18, 2007), Daqing will provide the service outsourcing companies with the following incentives: housing rent exemption, subsidies for communications, certification and labor training, preferential loans and settlement of employees.



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