AS China’s pioneering reform hub and the core engine of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), Shenzhen is leveraging digital service outsourcing to propel its information technology outsourcing (ITO) sector toward high-value, technology-intensive offerings.

Data from the Shenzhen Municipal Commerce Bureau revealed that as of December 2024, the city’s offshore service outsourcing had reached 82 countries and regions. Digital trade import-export volume hit US$60.16 billion in 2024, up 11.3% year on year, with exports growing 6.4% to US$29.21 billion. As a national service outsourcing model city, Shenzhen saw executed contract value rise 17.4% in 2024, with ITO, BPO (business process outsourcing), and KPO (knowledge process outsourcing) growing 6.47%, 10.95%, and 11.69%, respectively, cementing its role as a key national growth pole for ITO exports.

Policy support spurs transformation

Shenzhen has refined policy support to consolidate its advantages in high-value segments like ITO and KPO. In 2023 the city introduced a series of measures to promote high-quality digital trade. Among them was a 15% reward — based on executed contract value — for outsourcing projects in cloud computing and AI, steering firms toward premium sectors like industrial software. Additional incentives included the “Shen i Qi” platform’s 80% subsidy for international certifications and Qianhai’s pilot program recognizing overseas vocational qualifications.

“Shenzhen’s policy has entered a stage of quality and efficiency enhancement,” noted Li Ming, director of the Service Trade Research Center at Shenzhen University. “Competition is now centered on technology, delivery, and ecosystem — not just cost.”

Collaboration builds global delivery capability

Shenzhen’s ITO ecosystem thrives on the complementary strengths of diverse players. Alongside global giants like Huawei and Tencent, the city hosts a cluster of agile service providers.

Platform-based enterprises are exporting digital infrastructure capabilities globally. Huawei Cloud has established worldwide delivery centers while Tencent leverages its cloud and Qidian Platform to transform technical support for game exports into an ITO benchmark. “This represents the export of global digital infrastructure capability, far beyond simple coding,” an industry analyst observed.

Over 50 leading IT firms, including Kingdee International, Chinasoft International, iSoftStone, and Faben Information, alongside thousands of specialized SMEs, are winning international business through agile delivery and deep vertical expertise. Kingdee, for example, serves clients in 172 countries, supporting over 1,000 overseas flagship enterprises.

Talent pool boosts development

A robust talent pool underpins the industry’s ascent. Shenzhen’s employed population had exceeded 12.71 million by 2025, with nearly 700,000 in IT services. making it one of China’s most talent-dense IT cities. The city leads in concentrations of high-end talent in AI and cloud computing. Notably, about 24% of its service outsourcing workforce possesses multilingual and international project experience — double the national average.

Local universities, including Shenzhen University and the Southern University of Science and Technology, partner with industry leaders like Huawei and Tencent, producing tens of thousands of ICT (Information and Communication Technology) graduates annually.

Focusing on frontier fields to upgrade service outsourcing

Shenzhen’s ITO sector is now accelerating toward the top of the global value chain. In 2024, 11 of its digital trade cases were featured in the achievements of the GBA Trade Digitalization Pilot Zone, spanning AI-driven test automation and low-code platform outsourcing.

Experts expect Shenzhen to take on a more strategic global role as digital trade rules deepen under RCEP (Regional Comprehensive Economic Partnership), cross-border data flow pilots advance in the GBA, and local firms enhance international operations.

“Shenzhen’s ITO model — powered by innovation, staged for global delivery, and centered on high-value services — offers a blueprint for China’s service outsourcing upgrade and sets a new benchmark in the restructuring of the global digital value chain,” Li said.

(Li Jing)