By Huang Xin
The international software service outsourcing business undertaken by China is growing dramatically, which makes China the second largest destination country for offshore outsourcing in the world. With constant growth of the gross business scale, the types and countries of software outsourcing business tends to be diversified. Human resource development becomes more fruitful and enterprise competitiveness is much improved. Under such an environment, the software outsourcing industry is penetrating the big market during the process of transformation.
?In the Third ?China Sourcing? held recently, Chen Wei, Director of Software Service Industry Department of Ministry of Industry and Information Technology, said that the international market demand kept low in 2011 and export for all industries was affected and impacted to a certain extent. It is commendable that the software export in China reached to $30.4 billion in 2011, increased by 18.5 percent year on year; thereinto, the software outsourcing service export reached $5.9 billion, increased by 40.3 percent year on year.
?In order to focus on core competitive business and reduce software cost, enterprises tend to contract all or part of work in the software project to an outsourcing service enterprise. A huge software outsourcing market thus is formed. From the initial call center to the current cloud service, software outsourcing itself is also transforming and turning to the high end so as to bring forth a larger market.
?According to statistics, the scale of the software and information service outsourcing industry in China reached RMB383.5 Yuan in 2011, rose by 39.5 percent year on year, and made more contribution to the economic growth. The fulfilled contract amount for outsourcing service undertaken by enterprises reached $32.39 billion, rose by 63.6 percent year on year; there into, the contract amount for international offshore outsourcing service undertaking reached $23.83 billion, rose by 65 percent year on year and increased by 22 percent compared to that of last year.
The international market share of the Chinese outsourcing service industry is further expanded and the outsourcing service undertaken by China accounted for 23.2 percent of the total in the world in 2011, increased by 6.3 percent compared to that of last year.
?Still, Liu Jiren, Chairman and CEO of Neusoft Group, known for its software outsourcing service, views that software outsourcing enterprises acquire the international market with their human resource and the main reason why such kind of model keeps expanding quickly in Chinese software industry for years is that there are great domestic demand and cheap domestic engineering resource in China. However, with the rise of the Chinese human resources price, such a model will get into a dead end in China.
?Therefore, the software outsourcing service enterprises such as Neusoft Group are seeking for transformation. Guo Xin, president of Greater China Zone of IDC, a global market investigation firm, says that software outsourcing service needs a new form and both cloud computing and Internet of Things offer a new outsourcing platform. The software outsourcing service industry should not only focus on the IT department or data processing requirement, but turn from passively receiving enterprise data processing requirement to help enterprise to transform from physical production to information production. During such a process, software outsourcing service enterprise should play a consulting and advisory role.
?Transformation of the economic development pattern, adjustment of the industrial structure and development of the strategic emerging industries become the focus during the 12th Five-year Plan, which will release a huge outsourcing demand for software and information service. Domestic demand market will become a major one for software outsourcing and IT service industry in China.
?Meanwhile, Gao Songtao, deputy director of China Sourcing Alliance, says, ?the whole software and information service outsourcing industry is turning to the high end gradually. One of the presentations of this trend is that the outsourcing business has shifted from operational level to functional level. Presently, IT outsourcing business owns a large development scale, business process outsourcing enjoys a large development potential and IT-based business process outsourcing also meets a quick development.?
?Due to the above two reasons, the software outsourcing service in China is expected to enter into an even larger market because of this ?turning?.
Source: CE.cn
Source: http://thesauce.net.au/2012/03/software-outsourcing-exports-up-40-3-in-11/
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