software outsourcing

A blog related to software development company and offshore software outsourcing

Monday, February 27, 2006

China Offshore Software Development services Eye International Markets

Dalian, city of China after gaining a grip in the overseas software service market for Japan, companies from the city are now in the plan to set up their target at European and United States countries. Though China Offshore Software Development services eye international markets, these companies will have to match the weapons from their equivalents in India, as the software companies form the city Dalian will have to struggle against India for American business. However Dalian has not yet planned out a specific strategy for IT Outsourcing but still planning to encourage enterprises overseas in these Western areas and started taking steps to carry out research on the market's latest overseas trends.

Companies from China know that they have advantages in the Japanese market but still they also know that the European and American market is challenging for them as lots of Indian companies are performing well for IT Outsourcing services. They also know that they are also lacking in competitive edge like India in technology, English language, price, service and in some other areas. Offshore Software Development companies from China find that the biggest challenge for them will be to recruit skilled professionals and increasing computer skills to compete in the market globally. They also believe that they still need to improve their ability and skills as the Offshore Software Development form America is at a much higher level then the Japanese one.

City Dalian is the Software Outsourcing capital of China. City has got success in offering software and IT services to various companies globally. Though most the companies are from the house of Japan and the interesting fact is the city supplies more software and Information Technology services to the companies from Japan than any other Chinese city. Last year city's software industry sales made a record of CNY 10 billion. This means that country gained almost 60% increases in the past six years and the service also expanded 50 times from size it had eight years ago. From these figures Japan-oriented business was at least 75% to 80%, while the rest of business came from European, America and some other countries.

China finds Offshore Software Development to America tough

China finds Offshore Software Development to America tough because they are mature enough for such overseas dealings. Companies from the China also know that both markets, US and Japan, have two different methodologies for operation purpose. They know that India Software Development has almost covered the US market. So one can’t compare these two countries for such overseas dealings. Figures suggest that American market grabs 60%, supplied mostly by Indian Software developers. Though China is now eyeing on US market for Software Outsourcing, they would also like to maintain their shares in Japan market. One thing is also true that America has higher standards when it comes to overseas services compared to Japan and Europe. China knows that their ability is still needed to be increased to meet it and still they require some more time.

In short software companies from China are now making the move towards the American market. They are putting all possible efforts to enter into the US market for Offshore Software Development.