Notice of the General Office of Shanghai Municipal People's Government on Transmitting the Procedures of Shanghai Municipality on the Use and Management of Special Funds for Promoting the Development of Service Outsourcing Industry Formulated by the Municipal Commerce Commission and Two Other Departments

                                               (November 23, 2012)　SMPG GO G [2012] No. 66

Attention: all District and County People's Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People's Government:

The Procedures of Shanghai Municipality on the Use and Management of Special Funds for Promoting the Development of Service Outsourcing Industry formulated by the Municipal Commerce Commission, the Municipal Development & Reform Commission, and the Municipal Finance Bureau have been approved by the Municipal People's Government. We hereby transmit them to you and request you to implement them conscientiously.

Procedures of Shanghai Municipality on the Use and Management of Special Funds for Promoting the Development of Service Outsourcing Industry

Article 1 (Purposes and Basis)

With a view to normalizing the use and management of special funds for promoting the development of service outsourcing industry in this Municipality, improving the efficiency of fund use, and further giving play to the guiding role of public finance, these Procedures are formulated in accordance with relevant notices of the Ministry of Finance and the Ministry of Commerce on improving the management of development supporting funds for undertaking international service outsourcing business, the Notice of Shanghai Municipal People's Government on Printing and Distributing the Opinions on This Municipality's Implementation of the Reply of the General Office of the State Council on Encouraging the Service Outsourcing Industry to Accelerate Its Development (SMPG [2010] No. 56), and the Notice of Shanghai Municipal People's Government on Printing and Distributing the Procedures of Shanghai Municipality on the Use and Management of Guide Funds for Service Industry Development (SMPG G [2009] No. 24).

Article 2 (Sources of Funds)

The special funds for promoting the development of service outsourcing industry of Shanghai Municipality (hereinafter referred to as "special funds for service outsourcing") shall be arranged in the municipal guide funds for service industry development, earmarked for the development of service outsourcing industry in this Municipality. And all the districts/county shall be encouraged to, arrange auxiliary funds to support the development of service outsourcing industry according to the actual circumstances and requirements of the SMPG G [2009] No. 24 .        

Article 3 (Qualification for Applicants)

1. Enterprises/units applying for special funds for service outsourcing shall meet the following conditions:

(1) registered in this Municipality, with independent corporate qualifications, and business premises in Shanghai;

(2) engaged in IT services outsourcing, business process outsourcing, knowledge process outsourcing and other relevant services outsourcing;

(3) logged in the "management and statistics system for service outsourcing business (http://fwwbqy.fwmys.mofcom.gov.cn/)", and registered information and reported daily statistical data therein;

(4) the annual revenue from service outsourcing business undertaken by the enterprise/unit in the previous year shall not be less than USD 500,000, of which not less than 50% comes from the service outsourcing business provided to the end customers abroad;

(5) employees with a junior college degree or above account for not less than 70% of the total number of employees; 

2. Training institutions applying for special funds for service outsourcing shall meet the following conditions:

(1) having the qualifications for service outsourcing talent training;

(2) having the place, facilities, professional teaching materials and faculty that meet conditions;

(3) having experience in providing customized training for enterprises/units undertaking service outsourcing;

(4) having a sound financial system and qualified financial management personnel; and

(5) the training program applied for thereby in principle is that of non-profit training.

Article 4 (Scope of Use)

Special funds for service outsourcing are mainly used in the key fields and links in service outsourcing development of this Municipality, to promote healthy and rapid development of the service outsourcing industry of this Municipality and give full support to offshore, high-end and headquarters-based service outsourcing development. They are specifically used in the following aspects:

1. Supporting service outsourcing talent training.

(1) Encouraging service outsourcing enterprises/units to carry out talent training.

For enterprises/units in this Municipality that have received the State's corresponding annual special funds supporting their service outsourcing talent training, based on the supported funds given by the State, and in accordance with the number of supported talents for training approved by the State, for each newly-hired employee with a college (including junior college) degree or above, engaged in service outsourcing work and signed a labor contract for not less than 1 year, a fixed training subsidy of not more than 2,000 yuan per person shall be given to these enterprises/units. For the above enterprises/units listed as key service outsourcing enterprises (units) in this Municipality, a fixed training subsidy of not more than 2,500 yuan per person shall be given to these enterprises/units.  

Where the employed person terminates the contract ahead of the contract term and, within one year of the term stipulated in the original contract, signs a new labor contract with another service outsourcing enterprise or the original enterprise/unit, the said enterprise/unit shall not be given anew the fixed training subsidy.   

(2) Encouraging training institutions to undertake service outsourcing talent training.

For service outsourcing training institutions in this Municipality that have received the State's special funds supporting their service outsourcing talent training, based on the supported fund given by the State, and in accordance with the number of supported talents for training approved by the State, for each talent with a college (including junior college) degree or above trained thereby, who has passed the examination of service outsourcing professional knowledge and skill training and has signed a labor contract for not less than one year with a service outsourcing enterprise/unit, a fixed training subsidy of not more than 200 yuan per trainee shall be given to these training institutions.

2. Guiding service outsourcing enterprises/units to obtain international certifications.

Give support to the Capability Maturity Model Integration (CMMI), Capability Maturity Model (CMM), People Capability Maturity Model (PCMM), Information Security Management (ISO27001/BS7799), IT Service Management（ISO20000), Service Provider Environment Security (SAS70), Quality Management Standard (ISO9001), Laboratory Management Standard (ISO17025/JISQ17025)，Association for Assessment and Accreditation of Laboratory Animal Care (AAALAC), Good Laboratory Practice (GLP), Information Technology Infrastructure Library (ITIL), Customer Operations Performance Center (COPC), Society for Worldwide Inter-bank Financial Telecommunication (SWIFT), Business Continuity Management Standard (BS25999), Payment Card Industry Data Security Standard (PCIDSS) certifications obtained by service outsourcing enterprises/units in this Municipality that have not received the State's special funds supporting their service outsourcing. Each enterprise/unit may apply for up to three certification items per year. The subsidy for each item shall not be more than 30% of the actual cost of the certification and the maximum subsidy shall not be more than 300,000 yuan.  

3. Encouraging service outsourcing enterprises/units to develop international market.

For service outsourcing enterprises/units in this Municipality attending international service outsourcing exhibitions approved by the Municipal Commerce Commission, the Municipal Development & Reform Commission and the Municipal Finance Bureau, a subsidy of not more than 50% of the actual costs of registration and participation shall be given to the said enterprises/units. Each enterprise/unit may apply for up to three items per year. The maximum subsidy for each item shall not be more than 100,000 yuan.      

4. Encouraging the establishment of service outsourcing training and probation bases.

For service outsourcing enterprises/units which have signed internship agreements for not less than two years with relevant universities or colleges and accepted over 20 service outsourcing trainees every year, a subsidy of 1,500 yuan per person shall be given to the enterprise/unit for accepting each on-campus student (with a junior college degree and an internship over 3 months).     　　

5. Encouraging the development of headquarters-based service outsourcing enterprises/units in Shanghai.

For headquarters-based service outsourcing enterprises/units established after 2008 with a total asset of not less than one billion yuan, a registered capital of not less than 50 million yuan, and not less than three domestic and overseas branches, a lump sum subsidy of not more than one million yuan shall be given to each for its opening expense. 

6. Encouraging service outsourcing enterprises/units to establish branches overseas to explore emerging markets.

Encourage service outsourcing enterprises (units) to undertake offshore outsourcing business actively. For enterprises/units that established offices or branches overseas in the previous year, a lump sum subsidy of 100,000 yuan (not exceeding 50% of the first phase of total investment in the office or 50% of the registered capital of the branch) for each such office or branch shall be given to the said enterprises/units as opening expense. The subsidy to each enterprise/unit shall be up to 300,000 yuan. 

7. Promoting the construction of public service platforms for service outsourcing.

Give support to the construction of public service platforms for service outsourcing (including technology, information, training, research, intellectual property rights protection and statistics public service platforms) in this Municipality according to relevant provisions in the Procedures of Shanghai Municipality on the Use and Management of Guide Funds for Service Industry Development. Give support to cover some expenses of equipment purchase and software development needed in the construction of public service platforms for service outsourcing approved by the Municipal People's Government.

8. The financial support for the above-mentioned Item 1 to Item 4, and Item 6 shall be borne by the municipal special funds for service outsourcing and the financial support for Item 5 shall be borne by both the municipal special funds for service outsourcing and the district/county public finance, with each undertaking 50% of the cost.

Article 5 (Application, and Examination and Approval Procedures)

1. Fund application. Enterprises/units applying for special funds for service outsourcing shall file an application to the local district/county commerce department according to relevant provisions of the State and this Municipality. All district/county commerce departments shall earnestly examine the application materials and submit them to the Municipal Commerce Commission according to relevant provisions of the State and this Municipality.

No application shall be filed anew and no support of the special funds for service outsourcing shall be enjoyed by applicants whose application contents have been subsidized or supported by other municipal financial funds. All applicants shall be responsible for the authenticity and legality of their application materials.

2. Fund examination and approval. Upon making preliminary examination and collection of the application materials, the Municipal Commerce Commission may, according to the actual situation, entrust intermediary institutions to make professional assessment thereof. The result of preliminary examination shall be submitted to the Reviewing Group of Shanghai Municipality for Special Funds for Promoting Service Outsourcing Development formed by the Municipal Commerce Commission, the Municipal Development & Reform Commission and the Municipal Finance Bureau (hereinafter referred to as the "Reviewing Group") to make review and give reviewing opinions.  

Article 6 (Fund Appropriation)

The Municipal Commerce Commission shall apply to the Municipal Finance Bureau for fund appropriation based on the reviewing opinions. Upon examination and approval, the Municipal Finance Bureau shall appropriate the special funds to relevant enterprises/units according to relevant provisions on the State Treasury's centralized payment.

Article 7 (Submissions for Application)

1. The following basic materials shall be submitted for applying for the support of special fund for service outsourcing:

(1) a catalogue of application materials for Shanghai special funds for service outsourcing;

(2) a copy of the original enterprise/unit business license and the organization code certificate;

(3) the corporate commitments by the enterprise/unit on no illegal acts in import and export business management, financial management, taxation management, foreign exchange management or customs management in the recent two years and no false behavior in the application process;

(4) an itemization form of relevant fees and expenses; and

(5) the deposit bank account of the applicant enterprise/unit.

For the enterprises/units and training institutions in this Municipality that have received the support of the State's special fund for service outsourcing, no materials need to be provided anew to apply for the support of service outsourcing talent training by the special funds for service outsourcing.　　

2. The special materials to be submitted for applying for the support of the special fund for service outsourcing are respectively:

(1) The following materials shall be submitted by the enterprise/unit to apply for the support of international certification for service outsourcing:

A. an application form for the fund support of Shanghai service outsourcing industry certification;

B. a copy of industry qualification certificate of service outsourcing enterprise/unit;

C. a copy of payment voucher for industry qualification certificate of service outsourcing enterprise/unit; and

D. a copy of the contract/agreement signed between the service outsourcing enterprise/unit and an industry certification assessment consultant company.   

2. The following materials shall be submitted to apply for fund support of developing international service outsourcing market:

A. an application form for fund support of Shanghai developing international service outsourcing market; and

B. copies of vouchers of admission ticket, exhibition booth fee, exhibition installation fee, registration fee and such other fees for international service outsourcing exhibitions.

(3) The following materials shall be submitted to apply for fund support of service outsourcing talent training and probation bases:

A. an application form for fund support of Shanghai service outsourcing talent probations;

B. copies of cooperation agreements for not less than two years on accepting trainees signed with universities or colleges in this Municipality; and

C. copies of trainees' ID cards, student cards, or of tripartite employment agreements or school certificates and probation appraisals (including probation period, probation contents, etc.) of the previous year.

(4) The following materials shall be submitted to apply for support of headquarters-based service outsourcing enterprises/units:

A. an application form for fund support of Shanghai headquarters-based service outsourcing enterprises/units; 

B. a copy of business licenses with three domestic and overseas branches; and

C. the financial audit report and footnotes of the previous year.

(5) The following materials shall be submitted to apply for support of service outsourcing enterprises/units;

A. an application form for fund support of the establishment of overseas branches of Shanghai service outsourcing enterprises/units; 

B. copies of approval certificate by the commerce department for the establishment of overseas offices or branches of enterprise/unit and of business license of such offices or branches;

C. business summaries of overseas offices or branches of enterprise/unit for the previous year; and

D. other materials required for submission.

(6) To apply for support of the construction of public service platform of service outsourcing, the materials to be submitted shall meet the requirements of the Procedures of Shanghai Municipality on the Use and Management of Guide Funds for Service Industry Development.

(7) All district/county commerce departments shall submit the following materials:

A. a Shanghai district/county catalogue of examination and approval of application materials for service outsourcing;

B. a Shanghai district/county itemization form for fund support of headquarters-based service outsourcing enterprises/units;

C. a Shanghai district/county itemization form of the deposit bank accounts of the enterprises/units applying for special fund support; and

D. application materials of enterprises/units approved by district/county commerce departments.

3. A paper document (which needs to be bound) shall be provided for every application material. 

Article 8 (Supervision on Use)

The Municipal Commerce Commission shall, jointly with the Municipal Development & Reform Commission and the Municipal Finance Bureau, according to relevant provisions, implement the certified public accountant auditing system for the municipal special funds, conduct supervision and inspection on the use of special funds and project implementation for service outsourcing. The auditing expenses shall be covered in relevant special funds. 

The special funds for service outsourcing must be used exclusively for their specified purposes, and the enterprises/units using the funds shall strictly observe the State's relevant laws, rules and regulations, and financial and accounting system, and shall be strictly prohibited from swindling, withholding or diverting such funds for other uses. 

In case of violating relevant provisions of these Procedures by an enterprise or a unit, the Municipal Finance Bureau shall recover the funds in full, cancel its qualification for application in subsequent years; in a serious case or in violation of the State's laws, relevant personnel or enterprise/unit shall be prosecuted for liability according to law.    

Article 9 (Effective Date)

These Procedures shall be effective as of the date of printing and distribution until December 31, 2015.

The Trial Procedures of Shanghai Municipality on the Use and Management of Special Funds for Promoting the Development of Service Outsourcing Industry (SMPG G [2009] No. 49) formulated by the Municipal Commerce Commission, the Municipal Development & Reform Commission and the Municipal Finance Bureau and transmitted by the General Office of the Municipal People's Government shall be repealed simultaneously.

The Municipal Commerce Commission shall, jointly with the Municipal Development & Reform Commission and the Municipal Finance Bureau, be responsible for the interpretation of these Procedures.

　　                          Shanghai Municipal Commerce Commission

　　                          Shanghai Municipal Development and Reform Commission

　　                          Shanghai Municipal Finance Bureau

　　                          October 22, 2012