Friday, May 26, 2006

Offshore software outsourcing by Chinese listed firms

Now a day, Offshore Software Outsourcing has become the firm and driving force for the development and growth of the software industry. The Chinese Offshore Software Outsourcing service market continued to grow with the market scale climbing at 920 million American dollars, grown-up by 46 % as compared with 633 million American dollars in year 2004. In the international market the industry of Offshore Software Development as a whole just takes a very small segment, just more than two percentages that means still there exists more scope for developing it. As per the estimation by consulting firm for software outsourcing market, it would achieve more than 7 billion American dollar in next 4 year or so, which will represent 8.5 % of the whole world Undoubtedly, Offshore Software Outsourcing services has newer and newer growth point for the developing of the software application and industry itself.

Offshore Software Outsourcing and Information Technology

In up coming 5 years, the use of Software and IT application would be more comprehensive and systematic, the experts point out, and the information from small & medium organization will begin to warm up gradually; meanwhile, with the starting of digital Olympic Games and 3G technology it will definitely bring a new wave of Offshore Software Outsourcing and Information Technology investment and good construction in China. Before the year 2009, the offshore software development industry will maintain and constant and fast growth at the rate of 50 % annually. There are two software outsourcing nation only next to India in the whole world however, China's offshore outsourcing enterprises are like SSI when compared with India. This all is due to the insufficiency of technological research made by enterprises that are restricted by capital and scale businesses undertaken by domestic players.
Currently, regions that are good enough or mature in outsourcing industry are Beijing, Dalian, Shanghai and Shenzhen, etc. The 1st software organization majoring in development and outsourcing business for China, got listed in Hong Kong successfully with the total financial amount exceeds 100 million American dollar. Langchao International Service Ltd. possessing 3 listed companies that had successfully purchased two foreign funded organization for specializing in outsourcing services and one professional software testing firm in year 2004; it has also established a subsidiary with sole proprietorship in Japan that set up offices in the America and established four Research and development platforms in Shanghai, Beijing and other city correspondingly.
The biggest Offshore Software Outsourcing supplier in China enjoys experience of 15 years for software outsourcing and that has seen its performance rising upward along the way. Shengyang Neu-Alpine Software Development Company had non-tradable share reforms scheme to be approved, Chief Operation Official of the organization announced the firm’s operation and strategy for year 2006 and for coming five years, it will definitely continue to expand the proportion of offshore software outsourcing and explore in American and European markets.
Meanwhile, the Offshore Software Outsourcing organizations will also make great efforts for reinforcing its Research and development investment that get internationalized. The merchants of China securities gave the organizations with long term investment rating by strong recommended grade A & predicted the profits of that organizations will continue to grow in the future with the rate 40 %. As far as the income of Offshore Software Outsourcing is concerned, the organization's growth rate would be far more paced than the growth rate of 50 % for the whole industry.