Explore The Turning Point Of China's Software Outsourcing Industry

   June 18, 2009, Dalian, soft cross-seventh session,business." Peng aims only at boosting that the country
chairman of McKinsey Greater China, Europe andhas seen the value of software outsourcing and
Gordon Brown to make such a conclusion: China'ssoftware development outsourcing industry is
software outsourcing can be achieved by the currentdetermined potential. Peng suggested that countries
financial crisis, the reverse-type growth, one of thecan systematically introduce and implement the four
Jiao-Jiao by chance among the world's leader.support plans (growth engine program, domestic
June 20, in the software outsourcing trends in thedemand and the release of plans, project planning and
discussion, the McKinsey Global Director Peng aimsleading large outsourcing enterprise support plan),
only at boosting the EU Gordon Brown's words tooutsourcing prospects will be very bright.
extract the three meanings: the financial crisis, other  "Outsourcing" on the road with a few threshold
sectors in a recession, but the IT / BPO (BusinessAlthough promising, but the domestic software
Process outsourcing) industry growth; other countries inoutsourcing is still an urgent need to resolve several of
recession, but China and other emerging marketsweakness.
growth; other traditional software outsourcing in aFirst of all, market share and growth rate, China still
recession, but the new business model of outsourcinglags far behind India.
on the rise.    Value of the global offshore outsourcing in
State Assistant Minister of Commerce Wang Chao at2007 reached 60 billion U.S. dollars, while China
the soft opening of the fair revealed a few figuresaccounted for only less than 10% of the share; China's
appear to confirm the McKinsey judgments. Fromfour top IT software outsourcing services vendors in
January to May of this year, according to the latestthe past three years, a growth rate of 21%, although
statistics caliber, China's software exports amountedthe speed is not slower However, the company's
to 2.53 billion U.S. dollars agreement (excludingannual growth rate of India's top four manufacturers in
embedded software), an increase of 21.6%; toChina are twice the size in 2007 is to achieve 14 times
undertake service outsourcing agreement amountingthe Chinese manufacturers.
to 2.59 billion U.S. dollars, up 25.9%; while in 2008 China    China's software outsourcing industry remains
received, including ITO (information technologyhighly fragmented pattern was the lack of firm size
outsourcing) and BPO services, including outsourcingwith the world's top comparable to large-scale
agreements amounting to 3.81 billion U.S. dollars, anenterprises, but also yet to emerge a service
increase of 1.6 times.outsourcing revenues over one billion U.S. dollars in
  "China and other emerging markets in economicdomestic enterprises, which led our country can not
downturn will be the cost of arbitrage can beeffectively access to large-scale outsourcing and
accelerated through human development." McKinseyintegration projects .
think. In addition, although policy changes by the UnitedThis situation also resulted in a lack of the value of
States and Europe, the local real estate cost reductionChina's position and attractive enough. KPMG partner
and near-shore to reduce human capital factors suchWu Jianlin told reporters that KPMG had 150
as stimulation, Central America and Eastern Europemultinational companies CEO conducted a
and other places near-shore outsourcing of financialquestionnaire survey, most can easily say 10
institutions in Europe and the United States to increaseoutsourcing cities in India, but most people only
the attractiveness of business process outsourcing, butNengjiang Chu Beijing, China and Shanghai; If India is to
the McCann-Erickson Xi said China, India and otherpromote business development personnel effect 100,
offshore labor arbitrage opportunity is much higherChina's commercial development and extension of
than near-shore (70% vs. 30%), plus accumulatedresults to achieve an average of only 50, "China's lack
experience and India's outsourcing and humanof outsourcing cities and the entire industry as a whole
resource base has been relatively well, near-shorepackage, the lack of success story driven."
outsourcing is not the formation of a big threat.    At the same time, peripheral and other
    Blue Ocean "in package" to promote catch-upemerging countries in the service outsourcing on the
Compared with India, China's outsourcing softwarerise of outsourcing to China has also formed no small
companies there is another killer - not yet started thechallenge, such as: the Philippines, Malaysia, Vietnam,
huge domestic demand. According to McKinsey, inIndonesia and Egypt continue to increase the service
2008, China's total IT services spending ratio of GDP,outsourcing support to the governments of these
only 0.2%, while India's is 0.5%, South Korea 1.3%,countries one after another issued a vigorous policy
Japan 1.8%, close to 2% of the United States, thesupport. Researcher, according to McKinsey
United Kingdom and even up to 3 %, China is far loweroutsourcing Egypt, Egypt has "in 2017 to become one
than other countries.of the world's top five offshore outsourcing
Low ratio means that a huge room for growth, oncedestinations," As a government goal.
the market started, will bring a huge amount of