Trend of China's software outsourcing industry

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     The global financial tsunami, so that the U.S. financial industry on Wall Street plunged into an unprecedented crisis, the five major investment banks collapse one after another, the financial sector have started layoffs and pay cuts. Is highly dependent on the U.S. and European financial services needs of the global offshore outsourcing industry, has also been a serious blow.
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      January 14, 2009 share. In addition, 2008 were reduced to about 100 billion U.S. dollars.





      As a global service outsourcing market participants, China's software outsourcing industry has also suffered a serious blow. According to McKinsey on China's 14-something maps "(the three cluster areas and the eastern Midwest to play their respective advantages and cooperate) pattern. As a key state-supported service outsourcing base cities, Chongqing, Chengdu, Xi'an, Wuhan has a strong policy of support, a wealth of information technology professionals and competitive cost structure, is the development of inland areas of service outsourcing industry, where the most potential and advantages.





However, the global management consultant AT Kearney vice president Zhang heavenly view, the central and western development of software outsourcing software outsourcing business and the coastal cities compared to inland cities do not have the language advantage. Dalian has a large number of people proficient in Japanese, so you can focus on to the development of software outsourcing; Shenzhen Cantonese advantage because you can get from Europe and the United States from Hong Kong and Macao secondary the transfer of software outsourcing orders, while the central and western cities do not have these advantages. In this regard, the central and western cities on the one hand to strengthen the mastery of the 12 foreign language software, training of personnel and the introduction of work, we must also be relative to external demand and domestic demand, orders for combine to form a Midwestern characteristics of offshore outsourcing and offshore outsourcing go hand in hand in the industrial structure.





      In addition, there are also a number of key issues continue to hamper the industry and greater development. First of all, the industry remains highly fragmented pattern of submissions. China has not yet appeared to reach a certain scale (and service outsourcing revenues over one billion U.S. dollars) in business. The lack of industry with the world's leading enterprise-scale comparable to large-scale enterprises can not effectively access to value, especially in large outsourcing and integration projects, or in need of scale in areas such as infrastructure outsourcing. This is exactly why China in the global service outsourcing areas of less well-known one of the main.





      Second, compared to other, more well-known service outsourcing destinations, China is still a lack of a clear value proposition. IT decision-makers often referred to multinational companies in China do not understand the successful implementation of large-scale service outsourcing project successful precedent, and have always been more suitable for China as a global manufacturing center (although in recent years has made some change), rather than new service outsourcing power concept. At the same time, for the potential risks of outsourcing in China there are also a considerable degree of misunderstanding, such as China's IPR protection problems.





      Third, the potential contracting companies do not generate enough demand to promote the growth of domestic service providers. McKinsey surveyed the software and service outsourcing enterprises, 51% pointed out that domestic customers would like to control the key business support functions within the enterprise the habit of thinking is that these companies do not outsource more business in the first place. As a result, the domestic market has not formed a strong domestic growth of service outsourcing enterprises pillar, or to international service providers, the great attraction.





       Despite the financial crisis on the service outsourcing industry may be short-term negative impact, but China's service outsourcing enterprises, the midst of the crisis bears more opportunities. It is understood that the United States six major financial institutions in the 5 months of service outsourcing and offshore programs.





  The current financial crisis in many developed countries have a high-quality technology and client network information services company drop in asset prices, in order to have sufficient funds, while strategy can produce synergy of Chinese enterprises with more opportunities for potential acquisitions. Open global markets, as China's software and service outsourcing enterprises is key to achieving growth targets, the Chinese market will expand and deepen the global business portfolio of opportunities (especially in the current weakness in the case of developed-country markets). China's service providers with international service providers form a strategic alliance relationship to domestic customers by providing international partners to introduce new service capabilities.





       Moreover, with the development of the global financial crisis, there will be familiar with the international market, customers, possess a wealth of industry experience, professionals will be looking for further career development opportunities, in addition to emerging economies such as China powers the prospect of excellent enterprises, if the Enterprises can create a suitable working environment - including a competitive salary, can be promoted to senior positions in the career development path and inclusive diversity, corporate culture, you can attract more outsourcing in developed countries experienced professionals to join China's enterprises.