Finance Departments (Bureaus), Development and Reform Commissions, Science and Technology Departments (Bureaus), Departments in charge of Industry and Information Technology, Commerce Authorities, State-owned Assets Supervision and Administration Commissions, Banking and Insurance Regulatory Bureaus, and Securities Regulatory Bureaus of all provinces, autonomous regions, municipalities directly under the central government, and cities separately listed in the national plan:

The service outsourcing industry is a modern service sector that is highly intensive in intellectual talent. It features high IT integration, substantial added value, low resource consumption, minimal environmental pollution, strong capacity to absorb college graduates into employment, and a high degree of internationalization. Implementing the Scientific Outlook on Development and adhering to the work requirements of ensuring economic growth, expanding domestic demand, and adjusting the economic structure, supporting and encouraging the development of the service outsourcing industry are of great significance for both current and future economic development. In accordance with the spirit of the “General Office of the State Council’s Reply on Promoting the Development of the Service Outsourcing Industry” (Guobanfa [2009] No. 9), and to encourage governments and enterprises to outsource non-confidential business activities such as data processing to specialized companies through service procurement and other means, thereby promoting the sound and rapid development of China’s service outsourcing industry, the following guiding opinions are hereby put forward:

First, we must actively support the development of the service outsourcing industry. Governments at all levels should seize this rare opportunity for the growth of the service outsourcing industry and prioritize promoting government and enterprise outsourcing as a key driver for China’s service outsourcing sector. We should intensify publicity efforts for service outsourcing, shift away from traditional perceptions of outsourcing models within China, and ensure that service outsourcing gains recognition from governments at all levels as well as large and medium-sized enterprises.

Second, we should actively leverage the demonstration and leading role of model cities for service outsourcing. In the course of developing government informationization, e-government, enterprise informationization, and e-commerce, we should encourage governments and relevant departments to integrate resources and outsource the development, application, and certain process-oriented business activities of information technology to specialized service providers. This will help expand the domestic demand market and foster the growth of China’s domestic service outsourcing industry.

Third, in line with the principles of rational resource allocation and conservation, we will further enhance the policy functions of government procurement. Procurement entities are encouraged to outsource non-confidential, outsourcable tasks—including information technology consulting, operations and maintenance, software development and deployment, testing, data processing, system integration, training, and leasing—to specialized enterprises, thereby continuously broadening the scope of services purchased. Any outsourced services purchased at or above the government procurement threshold must, in accordance with relevant government procurement regulations, be procured from outsourcing companies in China that meet national standards and possess the requisite professional qualifications.

Fourth, establish relevant contracting standards and technical specifications for service providers, actively guide and encourage both central and local enterprises to increase their outsourcing efforts, and create more opportunities for outsourcing service providers to participate in domestic enterprises’ outsourcing projects.

V. Conduct research to establish a service evaluation system and mechanism for outsourcing enterprises, select outsourcing enterprises—particularly those providing information technology services—that possess certain capacity to take on projects, and prioritize their engagement in government outsourcing services. Provide support to help these outsourcing enterprises grow stronger and larger, and foster the early emergence of a group of leading outsourcing enterprises.

6. Actively explore the possibility of government functional departments or large and medium-sized enterprises spinning off their existing IT and related service divisions, integrating them with professional outsourcing service providers through various forms, expanding their client base and business scale, and enhancing their operational capabilities.

7. Building on the existing public support platform for software and information services outsourcing, further establish and refine a platform for connecting outsourcing project information with contracting enterprises, thereby facilitating smooth coordination between outsourcing initiators and contractors. Actively build bridges between large and medium-sized enterprises and service outsourcing companies, organize and arrange matchmaking meetings between these enterprises and outsourcing providers, and establish effective communication channels between them. Conduct research to support the formation of cooperative alliances between service outsourcing companies and large and medium-sized enterprises, strengthen business exchanges and communication, and encourage large and medium-sized enterprises to gradually outsource their business operations in a phased manner.

8. Strengthen training for relevant personnel from local governments and enterprises, cultivating a group of mid- to high-level managers who are familiar with service outsourcing business and have a deep understanding of the market, thereby effectively managing government and enterprise outsourcing projects.

9. Comprehensively leverage policy tools—including fiscal, financial, tax, and government procurement measures—to actively promote the rapid development of the service outsourcing industry. Through policy support, strengthen brand promotion and marketing for service outsourcing enterprises, and build China’s distinctive service outsourcing brands.

10. When government agencies or enterprises engage in service outsourcing, they must comply with national laws and strictly adhere to the provisions of the "Law of the People's Republic of China on the Protection of State Secrets," thereby strengthening confidentiality management. At the same time, they should enhance their awareness of legal risks associated with various stages of the service outsourcing process—including contracting, accepting contracts, subcontracting, and re-subcontracting—so as to promote the standardized operation of the service outsourcing industry.

　　Ministry of Finance, National Development and Reform Commission, Ministry of Science and Technology

Ministry of Industry and Information Technology, Ministry of Commerce, State-owned Assets Supervision and Administration Commission

CBRC, CSRC, CIRC

September 23, 2009