II. Traits of Development

1. Establish good cooperation relationship with international service outsourcing market.
Presently enterprises like Microsoft, IBM, Intel, Motorola, Autodesk, Comprousa, Cisco, and Nokia have formed strategic partnerships with the core enterprises in Changsha Software Base. Together they set up many technology centers and joint labs like Intel Computer Animation Cartoon Technology Development Center, Microsoft Mobile Phone Animation Cartoon Innovation Center, Motorola Mobile Applied Technology Innovation Center, and IBM authorized training center. The technological cooperation ties of service outsourcing are increasingly strengthened.

2. Changsha High-tech Zone has become the major assembly area for service outsourcing industry in Changsha.
Changsha High-tech Zone is a model zone for service outsourcing industry. The Software Industry Base in the zone is a “National Torch Plan Software Industry Base” authenticated by Ministry of Science and Technology, and a “National Software Industry Base” authenticated by State Administration of Development and Reform and Ministry of Information Industry. It concentrates above 70% of the software development, service outsourcing enterprises in Hunan.

3. Service outsourcing policy system is gradually being perfected. ?
Changsha has researched and stipulated favorable policies supporting service outsourcing industry development, which will play a facilitating role for Changsha service outsourcing enterprises in keeping upgrading innovative ability, strengthening IPR protection, building public service platform, promoting international qualification authentication, and assembling innovative talents.

4. The market expanding ability of service outsourcing enterprises is continuously strengthened.
Presently the service outsourcing market of Changsha is mainly oriented toward Europe, America, Japan and the South East Asia. Most the business of IT service outsourcing is relying on Japanese market, with European and American market as the auxiliary part. The service outsourcing business mainly takes the form of direct order taking and high end business. Most IT service outsourcing enterprises, especially the Japan-oriented ones, have set up market and technological support agencies overseas while the research and development agencies are in Changsha. Meanwhile, the business taken is mainly in project overall construction and high-end development, the upper stretch of industrial chain.

III. Development Advantages
1. Profound science and technology strength. Changsha is one of the key higher education and research bases in China. There are 45 higher education institutions, 76 special training agencies, over 120 research institutions, 47 national and provincial key labs, 46 academicians of science academy and engineering academy, and 340,000 technological staff. The disciplines are in fields like information engineering, computer software, electronic information technology.
2. Abundant talent resources. There are over 450,000 on-campus students at higher education institutions in Changsha, 50,000 of whom are full time postgraduates; about 300,000 of whom are full-time undergraduate or junior college students; and about 100,000 of whom are part-time postgraduates, adult students, network students and higher education self-taught students. Presently there are over 30 training institutions in Changsha have service outsourcing training courses, such as Xinhua Computer, Newer, NIIT, Chuangshiji Computer Institute,? Hunan International Economics University, Shenzhen Software, Fanghua, Wharton, and Japan Institute.?
3. Sharp features of animation cartoon industry. The annual production of original animation cartoon in animation cartoon and games industry in Changsha ranks first in China. The Great Dreams Cartoon Co. Ltd. and Sanchime Cartoon Group Co. Ltd. rank Top 1 and Top 2 among the Top 10 animation cartoon enterprises in China. Brands like “Blue Cat”, “Rainbow Cat”, “Bobcat”, and “Gold Eagle Cartoon Channel” bring fame for animation cartoon industry in China, which has relative strong power in accepting service outsourcing business.