Software outsourcing industry to find new spots

August, China's stock market staged a "roller coaster"The financial crisis has given China's software
big, the index plunged 21%, but in comparison, 39 listedoutsourcing industry has been slow, but the innovation
software company strength to buck the trend, theand hard work and strong capabilities in the
average dropped only 14.6%, in particular, is the largestdevelopment of Chinese enterprises will take the
software outsourcing company Neusoft Group Theopportunity to be better development, Neusoft Group
stock also hit a new high this year.Chairman Liu Jiren forecast, "China's software
The collective strength of both the software stocksoutsourcing industry in 5 years -10 years is expected
for market reasons, but also better performanceto more than India. "
supporting factors.Among the ranks of the powerful, yet to deal with
Software outsourcing industry in bottom to pick up, amultiple challenges
stronger performanceDespite the promising, but the software enterprises in
As of August 31 from the last day of the performanceChina ranks among the world's powerful take time, the
of the daily news bulletin of view, the vast majority ofdomestic software outsourcing is still an urgent need
the overall good performance of the software stocks,to resolve several of weakness.
in particular, the two leading software industry UFIDA,China's software outsourcing industry is still highly
Neusoft Group in an adverse environment despite thefragmented pattern of submissions, outsourcing market
remarkable achievement , is welcome.concentration is low, and outsourcing companies is
From the domestic sources of international businessrelatively small and lack the world-class enterprise
outsourcing software industry, Japan accounted forscale comparable to large-scale enterprises, but also
32.3%, U.S. 24.6%, European 7.8%, Japan has becomeyet to emerge a service outsourcing revenues over
China's largest outsourcing contracting State. Japanone billion U.S. dollars in domestic enterprises, which has
software outsourcing now accounts for more thanled our country can not effectively access large-scale
half of Neusoft's entire business, for many years theoutsourcing and integration projects.
average growth rate has remained at 20% -30%, andSecond, because China's software outsourcing to
net profit this year remain at 30% or more, they clearlyJapan 60% of outsourcing, and low-cost, low-margin
show that the ability to enhance earnings managementwin, enterprise core profitability is not high.
Neusoft On the other hand can be seen entering inFurthermore, the ability of independent innovation of
May, Japan and the U.S. economy started to bottomChina's software industry is not strong, the core
recovery signs appear warmer, which is a softwaretechnology controlled by the United States, Japan and
outsourcing as one of the main business Neusoft,other big countries, so that software companies from
Insigma, Donghua software, Rise of software such asthe pack at home and abroad "Made in China" to
enterprise software, and UFIDA lay the foundation of"Created in China" and change facing greater
great significance. As China's software outsourcingpressures.
outsourcing 60% of Japan, once Japan's economicIn addition, by the revaluation of the RMB, the new
stability, the amount of software outsourcing will belabor law implemented, such as wage costs to
re-rapid growth, as Japan's most important softwareenhance the impact of China's software outsourcing
outsourcing provider, will undoubtedly be thebusiness of cost increase, profits decline.
beneficiaries.The current financial crisis caused by the economic
Promising outsourcing business, will become thedownturn at home and abroad has not completely
backbone of China's software industrystabilized, the aftermath will continue to wreak havoc,
Public letter to the Ministry predicts that the softwarethe challenges of China's software outsourcing industry
industry in China by 2010, the proportion of GDP willis still large, should be prepared to respond actively.
reach 2% in 2015-2020 and may become the top twoExperts point out that if the national system to launch
or three years of big business. In the global softwareand implement support plans  four engines of
outsourcing trend in the economy thereof weregrowth plans, domestic demand and the release of
important, one of the software outsourcing businessplans, project planning and leading large outsourcing
will become one of the main pillars of the industry.enterprise support program , and to improve
In China, few industries such as software outsourcingthe competitiveness of the software core technology,
industry, as in the sluggish market environmentChina's outsourcing prospects will be very bright .
continues to achieve impressive growth, thriving.