The Chinese government recently announced that starting from January 2009, tax breaks, subsidies, financial support and intellectual property rights protection will be offered to service outsourcing companies nationwide to encourage growth and development.

According to a document drafted by the Ministry of Commerce, among subsidies, the government will offer up to RMB 4,500 (US 662) a year for every college graduate employed on a contract for at least one year.

Technology-advanced service outsourcing companies are also allowed to adopt flexible working hours with the approval of the local human resources department.

Service outsourcing companies in Suzhou Industrial Park already enjoy an enterprise income tax rate of 15 percent until 2013, compared with 25 percent for the rest of the country.