Software outsourcing industry to find new spots

In August, China’s stock market staged a “roller coaster” big, the index plunged 21%, but in comparison, 39 listed software company strength to buck the trend, the average dropped only 14.6%, in particular, is the largest software outsourcing company Neusoft Group The stock also hit a new high this year.

The collective strength of both the software stocks for market reasons, but also better performance supporting factors.

Software outsourcing industry in bottom to pick up, a stronger performance

As of August 31 from the last day of the performance of the daily news bulletin of view, the vast majority of the overall good performance of the software stocks, in particular, the two leading software industry UFIDA, Neusoft Group in an adverse environment despite the remarkable achievement , is welcome.

From the domestic sources of international business outsourcing software industry, Japan accounted for 32.3%, U.S. 24.6%, European 7.8%, Japan has become China’s largest outsourcing contracting State. Japan software outsourcing now accounts for more than half of Neusoft’s entire business, for many years the average growth rate has remained at 20% -30%, and net profit this year remain at 30% or more, they clearly show that the ability to enhance earnings management Neusoft On the other hand can be seen entering in May, Japan and the U.S. economy started to bottom recovery signs appear warmer, which is a software outsourcing as one of the main business Neusoft, Insigma, Donghua software, Rise of software such as enterprise software, and UFIDA lay the foundation of great significance. As China’s software outsourcing outsourcing 60% of Japan, once Japan’s economic stability, the amount of software outsourcing will be re-rapid growth, as Japan’s most important software outsourcing provider, will undoubtedly be the beneficiaries.

Promising outsourcing business, will become the backbone of China’s software industry

Public letter to the Ministry predicts that the software industry in China by 2010, the proportion of GDP will reach 2% in 2015-2020 and may become the top two or three years of big business. In the global software outsourcing trend in the economy thereof were important, one of the software outsourcing business will become one of the main pillars of the industry.

In China, few industries such as software outsourcing industry, as in the sluggish market environment continues to achieve impressive growth, thriving.

The financial crisis has given China’s software outsourcing industry has been slow, but the innovation and hard work and strong capabilities in the development of Chinese enterprises will take the opportunity to be better development, Neusoft Group Chairman Liu Jiren forecast, “China’s software outsourcing industry in 5 years -10 years is expected to more than India. ”

Among the ranks of the powerful, yet to deal with multiple challenges

Despite the promising, but the software enterprises in China ranks among the world’s powerful take time, the domestic software outsourcing is still an urgent need to resolve several of weakness.

China’s software outsourcing industry is still highly fragmented pattern of submissions, outsourcing market concentration is low, and outsourcing companies is relatively small and lack the world-class enterprise scale comparable to large-scale enterprises, but also yet to emerge a service outsourcing revenues over one billion U.S. dollars in domestic enterprises, which has led our country can not effectively access large-scale outsourcing and integration projects.

Second, because China’s software outsourcing to Japan 60% of outsourcing, and low-cost, low-margin win, enterprise core profitability is not high.

Furthermore, the ability of independent innovation of China’s software industry is not strong, the core technology controlled by the United States, Japan and other big countries, so that software companies from the pack at home and abroad “Made in China” to “Created in China” and change facing greater pressures.

In addition, by the revaluation of the RMB, the new labor law implemented, such as wage costs to enhance the impact of China’s software outsourcing business of cost increase, profits decline.

The current financial crisis caused by the economic downturn at home and abroad has not completely stabilized, the aftermath will continue to wreak havoc, the challenges of China’s software outsourcing industry is still large, should be prepared to respond actively.

Experts point out that if the national system to launch and implement support plans four engines of growth plans, domestic demand and the release of plans, project planning and leading large outsourcing enterprise support program , and to improve the competitiveness of the software core technology, China’s outsourcing prospects will be very bright .