Suzhou Expat - The expatriate portal in China

The State Council recently approved 20 cities, including Beijing, Shanghai, Suzhou, and Hangzhou, as pilot service outsourcing regions, where companies are eligible for favorable policies.

The ongoing preferential tax policies applicable to Suzhou Industrial Park enterprises providing advanced services remain valid; moreover, from January 1, 2009, to December 31, 2013, qualified service companies with advanced technologies would enjoy an enterprise income tax rate of 15 percent, compared with 25 percent elsewhere in the country, as well as zero sales tax on their offshore outsourcing services. Those meeting required conditions and with standard labor management systems in these 20 cities will also enjoy a series of other preferential policies including the implementation of special working hours and service systems.

2008 witnessed the rapid and the most satisfactory growth of outsourcing service industry in Suzhou. There were over 500 first-time registered companies during the year, which is more than the total in all previous years. Among those establishing business branches in this city, some are prestigious brands, such as US Safesoft and Japanese Fujitsu. In 2008, the value of new outsourcing service contracts totaled at 393 million US dollars, including 329 million offshore contracts and accounting for 30% of the gross value in Jiangsu Province. Suzhou now has 970 outsourcing service enterprises, including five Top 100 companies in the world and 38 with CMM/CMMI certifications. Suzsoft was accredited as one of 2008 Leading IT Outsourcing Enterprises in China; two firms of Global Advantage and Linkage Software won the title of 2007 Top 20 Software Exporting and Outsourcing Companies in China.

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