China Software Outsourcing Company

Software Outsourcing - The Rapid Growth Business in China

26 Mar, 2010
Written by Effie Sha
Beijing RayooTech Co., Ltd.

China’s software outsourcing industry has kept a business growth in 2009 although the economic crisis has narrowed down the demand from global software outsourcers. ‘Although software outsourcing demand had reduced in 2009, China’s software exports and outsourcing industry still keep going,’ said by Wang Chao, Assistant Minister of Commerce.

The blueprint for China’s software outsourcing industry is bright but challenges still existed as the global economic will not recovered in the short time, especially for the small and medium sized software outsourcing companies.

Chinese government plans to transform a software outsourcing manufacturing base to a service hub and double in five years the export revenue of software outsourcing industry by 2010. By achieving the goal, Chinese government decide to build 10 international standard cities with modern facilities and environment. Chinese government also plans to help more than 1,500 software outsourcing companies grow to large size enterprises in the next five years. But some experts said Chinese software outsourcing companies still have long way to go due to their company size, experience and capacity compared with competitor Indian software outsourcing companies.

Kai Shao, CEO of RayooTech, one of the leading software outsourcing companies, said Chinese software outsourcing companies need to promote their ability of competition and industry structure instead of low level IT outsourcing work, hardware maintenance or other support services.

More and more U.S. and European companies begin to outsource their software projects to China and China expected to exceed India in the next five to ten years. China has already listed 20 major software outsourcing cities which have capabilities to undertake global software outsourcing projects. The 20 major software outsourcing cities are Beijing, Tianjin, Shanghai, Shenzhen, Guangzhou, Chongqing, Dalian, Wuhan, Harbin, Chengdu, Nanjing, Jinan, Hangzhou, Hefei, Nanchang, Changsha, Daqing, Suzhou, and Wuxi. As the capital of China, the largest international and modern city, Beijing would be the first choice to outsource global software projects.

China’s software industry reached total revenue of US$139.24 billion in 2009, up 25.6 percent year-on-year, reported by the Ministry of Industry and Information Technology (MIIT) on February 2010.

The table below breaks down China’s software outsourcing industry revenues from January to December 2009:

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