The hottest industry declines, and software outsou

  • Detail

Industry decline software outsourcing enterprises break through the encirclement on a large scale

what China needs to develop software outsourcing business is not orders and funds, but technology, experienced technicians and training mechanisms. In the next five years, the Chinese government plans to increase the scale of the software outsourcing industry to the same level as that of India, which requires Chinese enterprises to constantly strive for self-improvement. To realize large-scale development of China's software outsourcing industry, it needs the joint efforts of the industrial chain

"China's software outsourcing scale has room for leapfrog expansion, but the imperfect industrial environment and supporting conditions have weakened the expansion speed. In 2007, the growth rate of China's software outsourcing service market fell from 55% in 2006 to about 40%." Recently, Mou Shuhui, an analyst of CCID Consulting, said that software outsourcing is still developing rapidly and hot globally, but in recent years, the quality management system, talent quantity and quality, enterprise scale and internationalization of Chinese software outsourcing enterprises have not advanced as rapidly as the output value of software outsourcing

moushuhui believes that, unlike the rapid development of China's software outsourcing in previous years, which mainly benefited from international industrial transfer, with the increase of outsourcing destinations competing with China within the global scope that are difficult to improve capacity utilization, the competitiveness of China's software outsourcing industry has become the dominant factor in the competition. In the face of huge market opportunities, domestic enterprises need to practice their internal skills, otherwise there may be an embarrassing situation in which the development of China's software outsourcing industry is dominated by large multinational IT outsourcing service providers such as Indian outsourcing service providers, IBM, HP, EDS, etc. At present, many domestic software outsourcing enterprises are attacking in many ways, trying to get rid of the various adverse factors that restrict the development of the industry and seek a transformation path for their own growth and development

capital power promotion

capital is an important force to promote the quantitative development of industries. In the capital market, the software outsourcing industry is an industrial field with great investment value. Therefore, the already large-scale enterprises in the industry are targeting opportunities one after another, "when it's time to make a move"

recently, the news of Neusoft's overall listing has become a hot topic in the software outsourcing industry. On december26,2007, Shenyang Neusoft Software Co., Ltd. announced that Neusoft's plan on share exchange, absorption and merger of Neusoft Group Co., Ltd. had been conditionally approved by the Restructuring Committee of the CSRC. This means that the overall listing plan of Neusoft group, which has been prepared for nearly a year, has finally been approved by the CSRC and has begun to be implemented. The overall listing of Neusoft group not only marks an important step in Neusoft's scale and internationalization, but also lays a solid foundation for Neusoft's goal of becoming a world leading software and service company

LiuJiren, chairman of Neusoft Corporation and chairman and CEO of Neusoft group, regards the overall listing of Neusoft group as the second transformation of the company. In the first transformation, due to the impact of many factors such as China's software industry environment, the software business is difficult to make profits. Neusoft will focus on hardware businesses such as system integration and digital medical treatment; In the second transformation, Neusoft changed Neusoft's business structure with the help of software outsourcing, gained recognition from the capital market, and then expanded its software business through the power of the capital market, finally making Neusoft a real software enterprise

LiuJiren said that the overall listing is only the first step. Next, Neusoft may consider issues such as additional issuance and financing to expand its businesses, including Neusoft's software outsourcing industry, digital medical industry and system integration business. Among them, software outsourcing business will be the focus of Neusoft's business expansion

Wensi Information Technology Co., Ltd., a software outsourcing and service provider, has also recently expanded and developed with the help of capital. As the first domestic software outsourcing enterprise listed in the United States, Vince officially landed on the New York Stock Exchange on December 12, 2007, with an issue price of $8.5 and a financing of $65.025 million

huqinghua, director of Beijing Software Industry Promotion Center, said that in order to become bigger and stronger, software outsourcing enterprises need the support of the capital market, and listing is a very important stage. For Wensi company, listing and financing can accelerate its development, further highlight the brand effect, promote its further strengthening of standardized operation, take the lead in the development of software outsourcing enterprises, and help Wensi further open overseas markets and harvest more orders. In addition, Hu Qinghua also predicted that one or two outsourcing companies will be listed in the domestic and foreign capital markets every year in Beijing to ensure the normal use of the experimental machine. Through a series of capital operations, it is likely to produce a software outsourcing enterprise of 10000 people within this year

Hukunshan, Secretary General of China Software Industry Association, pointed out that software and information services in major developed countries such as Europe, America and Japan have begun to diversify and transfer. They have outsourced a large number of programming and after-sales services to some countries with lower production costs than China. According to relevant data, the growth rate of China's software industry exports has begun to decline in the first half of 2007

despite this, the scale of China's outsourcing business is still growing rapidly in recent years. According to the Market Research Report of CCID Consulting, the scale of China's software outsourcing service market in 2006 alone reached $1.43 billion. CCID consultants predicts that by 2010, China's software outsourcing market will reach US $7.03 billion, accounting for 8.4% of the global software outsourcing market. Based on this, software outsourcing service is attracting domestic software enterprises to join this rapidly developing market with a high profit margin. Neusoft group, Dalian Huaxin, ChinaSoft international and chinanews have all become well-known software outsourcing providers in China. Chenmeifeng, a researcher at Haitong Securities Research Institute, believes that what China needs to develop software outsourcing business is not orders and funds, but technology, experienced technicians and training mechanisms. In the next five years, the Chinese government plans to increase the scale of China's software outsourcing industry to the same level as that of India, which requires Chinese enterprises to constantly strive for self-improvement, because there are still many gaps between Chinese software enterprises and Indian enterprises to compete for the international market, of which the largest gap is in scale. Moreover, the pressure on lead smelting cost has been reduced.

generally speaking, the scale of China's software outsourcing enterprises is relatively small compared with India. Several Indian software outsourcing enterprises have achieved sales of more than 10billion yuan, such as Infosys, which is listed on NASDAQ. According to the Research Report on China's software outsourcing service market released by CCID Consulting in, the outsourcing revenue of Neusoft group, the first enterprise in China with software outsourcing revenue exceeding 100million US dollars, is only 101million US dollars. In terms of quality management, there is also a gap between domestic software enterprises and Indian enterprises. Only 6 of China's 30 large software enterprises have obtained CMM (Software Capability Maturity Model) level 4 or 5 certification, while all 30 large software enterprises in India have reached this level

sunxiufang, senior vice president of ChinaSoft, believes that the large-scale development of China's software outsourcing industry requires the joint efforts of the industrial chain to solve the external problems restricting the industrial development due to the high strength and light weight of PAN based carbon fiber composites. It is understood that China soft international is a software outsourcing company listed on the Hong Kong stock exchange, and its business development has gone abroad. According to the latest report released by IDC, in the field of domestic software outsourcing, China software international is the largest software business in Europe and America. "Once software outsourcing becomes large-scale, it is very important for enterprises to have the ability to analyze market customers, perfect quality processes, and equal the talent pool and demand pool. These are the embodiment of the actual large-scale software enterprise outsourcing ability. Only such enterprises can produce scale effects."

LiuJiren said that Neusoft group's overall listing is also based on Neusoft's consideration that the company is moving towards scale and internationalization through integration. Insiders believe that at present, there are still many constraints and adverse conditions for Chinese software enterprises to become bigger and stronger. However, domestic software outsourcing enterprises will form a joint force for development by integrating their own market, technology and management resources, and explore the market with the idea of large-scale development, which will be a new innovative development model for Chinese software enterprises. (Zhang Wei)

Copyright © 2011 JIN SHI