Under The Economic Crisis, China's Software Outsourcing Industry, Where To Go From Here?

  The global financial tsunami, so that the U.S. financialappeared to reach a certain scale (and service
industry on Wall Street plunged into an unprecedentedoutsourcing revenues over one billion U.S. dollars) in
crisis, the five major investment banks collapse onebusiness. The lack of industry with the world's leading
after another, the financial sector have started layoffsenterprise-scale comparable to large-scale enterprises
and pay cuts. Is highly dependent on the U.S. andcan not effectively access to value, especially in large
European financial services needs of the globaloutsourcing and integration projects, or in need of scale
offshore outsourcing industry, has also been a seriousin areas such as infrastructure outsourcing. This is
blow.exactly why China in the global service outsourcing
January 14, 2009, the world-renowned consulting firmareas of less well-known one of the main.
McKinsey published data, the global offshoreSecond, compared to other, more well-known service
outsourcing of production in 2007 reached 60 billion U.S.outsourcing destinations, China is still a lack of a clear
dollars, while China accounted for only less than 10%value proposition. IT decision-makers often referred to
of the overall market share.multinational companies in China do not understand the
  In addition, in January 2008 to September, thesuccessful implementation of large-scale service
financial sector for more than 20 million U.S. dollarsoutsourcing project successful precedent, and have
worth of large outsourcing contracts increased fromalways been more suitable for China as a global
130 down to about 100 copies, the total contract valuemanufacturing center, rather than the emerging
fell from 18 billion U.S. dollars to 11 billion U.S. dollars.concept of service outsourcing powers. At the same
As a global service outsourcing market participants,time, for the potential risks of outsourcing in China there
China's software outsourcing industry has alsoare also a considerable degree of misunderstanding,
suffered a serious blow. According to McKinsey,such as China's IPR protection problems.
China's 14 cities in 75 software and IT servicesThird, the potential contracting companies do not
company, as well as a number of Chinesegenerate enough demand to promote the growth of
government officials and China's service outsourcingdomestic service providers. McKinsey surveyed the
park manager interviews show that China's servicesoftware and service outsourcing enterprises, 51%
outsourcing industry growth rate is still not fast enough.pointed out that domestic customers would like to
Impeding the development of China's servicecontrol the key business support functions within the
outsourcing industry, the cause? In the context of theenterprise the habit of thinking is that these companies
global financial crisis, the domestic service outsourcingdo not outsource more business in the first place. As a
industry, how should they respond? Under attack in theresult, the domestic market has not formed a strong
real economy, IT spending to reduce the softwaredomestic growth of service outsourcing enterprises
orders compression, yuan appreciation, softwarepillar, or to international service providers, the great
exports under pressure of the special period, give theattraction.
plight of China's software industry has brought aboutDespite the financial crisis on the service outsourcing
development opportunities and do?industry may be short-term negative impact, but
At present, China's service outsourcing industry,China's service outsourcing enterprises, the midst of
carriers formed a "three clusters" (the Bohai industrialthe crisis bears more opportunities. It is understood that
clusters, industrial clusters Yangtze River Delta, Pearlsix major financial institutions in the United States in five
River Delta industrial clusters), "East map" (the centralintends to continue to maintain or expand within the
and western areas and the eastern three clusters playnext 6-12 months, service outsourcing and offshore
their respective advantages and cooperate with )programs.
pattern. As a key state-supported service outsourcingThe current financial crisis in many developed countries
base cities, Chongqing, Chengdu, Xi'an, Wuhan has ahave a high-quality technology and client network
strong policy support, a wealth of informationinformation services company drop in asset prices, in
technology professionals and competitive costorder to have sufficient funds, while strategy can
structure, is the development of service outsourcingproduce synergy of Chinese enterprises with more
industry, inland areas with the most potential andopportunities for potential acquisitions. Open global
advantages lies. However, the global managementmarkets, as China's software and service outsourcing
consultant AT Kearney vice president Zhang heavenlyenterprises is key to achieving growth targets, the
view, the central and western development ofChinese market will expand and deepen the global
software outsourcing software outsourcing businessbusiness portfolio opportunities. China's service
and the coastal cities compared to inland cities do notproviders with international service providers form a
have the language advantage. Dalian has a largestrategic alliance relationship to domestic customers by
number of people proficient in Japanese, so you canproviding international partners to introduce new
focus on to the development of software outsourcing;service capabilities.
Shenzhen Cantonese advantage because you canMoreover, with the development of the global financial
get from Hong Kong and Macao regions of secondarycrisis, there will be familiar with the international market,
software outsourcing from Europe and the Unitedcustomers, possess a wealth of industry experience,
States transfer of orders, while the central andprofessionals will be looking for further career
western cities do not have these advantages. In thisdevelopment opportunities, in addition to emerging
regard, the central and western cities on the one handeconomies such as China powers the prospect of
to strengthen the mastery of the 12 foreign languageexcellent enterprises, if the Enterprises can create a
software, training of personnel and the introduction ofsuitable working environment - including a competitive
work, while at the same external demand andsalary, can be promoted to senior positions in the
domestic demand, orders will be combined to form acareer development path and inclusive diversity,
Midwestern characteristics of offshore outsourcingcorporate culture, you can attract more outsourcing in
and onshore industrial structure of outsourcing go handdeveloped countries experienced professionals to join
in hand.China's enterprises.
In addition, there are also a number of key issuesChina is in the development of service outsourcing
continue to hamper the industry and greaterindustry, a key crossroads, despite many challenges,
development. First of all, the industry remains highlybut as long to grasp the opportunity, there is still
fragmented pattern of submissions. China has not yetopportunity to create brilliant.