Software Outsourcing Industry Will Be Greater Government Support

From the Ministry of Information Industry of the "2007of large-scale enterprises, the core competitiveness
China Software and Information Service Outsourcinghas not yet formed.
Industry Development White Paper" and "2007 ChinaChinese enterprises have a certain industrial base, but
Software and information service outsourcingalso a lack of management experience. Some get the
enterprises and personnel research report" shows thatrelevant qualification of the enterprises in the course of
currently China's software and information servicebusiness is still lagging behind the actual implementation
outsourcing industry, with strong government support,capacity. In the past, the Japanese outsourcing
sound infrastructure, abundant human resources andbusiness accounts for 57.6% of the total, this part of
other advantages, but small-scale enterprises, capacitythe lower profit margins, so Europe and the United
to undertake large-scale projects is weak, enterpriseStates to develop high-margin outsourcing business to
project management capacity, and scarcity ofbecome the next focus of development.
professionals and other issues also plagued theIn addition, the survey also pointed out that to develop
emerging industries. Both reports suggested that Chinathe type of China-based outsourcing company can
should focus on intellectual property protection,undertake the majority of the most basic coding,
increase the training of personnel, and to promote thefollowed by a high degree of difficulty to undertake the
nation's public branding, and corporate alliances.project design, the monomer testing, system testing, ie
Industry BottleneckITO (Information Technology Outsourcing) accounted
Today, China, Dalian has become a well-knownfor 91% of the market; but can provide advisory
business process outsourcing services center. In thisservices to small business outsourcing, BPO market is
region, rather well-known company is subordinate toonly 9%.
the former General Electric (GE) subsidiary ofPolicy support
Genpact. But now the company has to face not onlyAccording to China in 2010 to promote China's
competition, more problems people lure them awaysoftware and information services outsourcing industry
from peers. In China, capable business processrealized a sales income of 10 billion U.S. dollars, more
outsourcing (BPO) staff who are not much, andthan 100 large and medium enterprises, outsourcing
therefore, major outsourcing agencies in this area hasprofessionals more than 500,000 goal.
been coveted by professionals.Ministry of Information Industry in the White Paper
The problems faced by the company Genpact is alsostates that China's government will make efforts to
a Chinese software and information servicesresolve the following issues: first, to expedite the
outsourcing companies are facing trouble. Surveyimplementation of industrial policy, namely, "Software
showed that, at present, China's software outsourcingand Integrated Circuit Industry Development Act" in the
and information services about 800 enterprises,study and formulation work, promote their as soon as
employing total of 10 million people. However, apartpossible, and to develop other specialized policies and
from the above-mentioned lack of qualified personnel,management practices, and actively build service
our country still has small-scale enterprises, capacity tooutsourcing base cities.
undertake large-scale projects is weak, enterpriseSecond, we should vigorously implement the software
project management capabilities lower the bottleneckand information services outsourcing industry, the
restricting development of the industry.national brand strategy, and actively guide and
Report pointed out that, at present, China's softwareencourage enterprises to integrate resources, joint
and information service outsourcing enterprises, withcooperation, promote the establishment of recognized
fewer than 100 enterprises accounted for 79.2%, moresoftware services outsourcing and information portal
than 500 people and only 6%, the largest enterprisesthat provides businesses with international contract
more than 4,000 people, the smallest less than 10information.
people. From the sales point of view, in 2006, China'sThe most important is the outsourcing industry alliance
sales revenue of the industry about 20 billion U.S.to establish and improve the overall core
dollars, turnover of more than 50 million yuan of thecompetitiveness. Ministry official pointed out that China
total number of enterprises accounted for only 7.3%.will establish a National Association of Software and
There are already several companies in India's annualInformation Service Outsourcing Industry Alliance, and
sales revenues of more than 2.0 billion. This shows thattruly play a role in promoting the industry alliance.
China's outsourcing industry practitioners is also a lack