Chinese companies had contracts abroad to provide outsourced services to a value of US$1.9 billion in the first eight months, up 17 percent from the same period last year, according to the Ministry of Commerce.

By the end of August, the number of outsource service companies in the country was about 1,800 with about 330,000 employees, the ministry's statistics showed.

In 2007, total contracts abroad for outsourced services were US$2.09 billion, up 118 percent over 2005.

Li Zhiqun, the ministry's official in charge of foreign investment, said many multinationals were transferring service industries to developing countries to reduce costs and increase competitiveness, offering new opportunities to China's outsourcing service industry.

The government plans to develop 10 outsourcing base cities by 2010 in an effort to build up outsourcing services. The cities include Shanghai, Dalian, Xi'an, Shenzhen and Chengdu.

(Xinhua News Agency October 13, 2008)