The Report of China's Software Outsourcing Market of 2007

The Report of China's Software Outsourcing Market of 2007

In 2006, China's offshore software outsourcing market scale reached US$1.43 billion (about US$ 50 billion of the world), an increase of 55.4 percent year-on-year. According to the prediction of CCID that China's offshore software outsourcing market will achieve US$7.028 billion by 2010, accounting for 8.4 percent of the total global offshore software outsourcing market. And the CAGR (compound annual growth rate) will be 50.2 percent in China.(19.5 percent CAGR for the world).

At present, China’s outsourcing software shared less than 5 percent, 10 percent and 1 percent of the global, Japan (sharing 10% of the global outsourcing market) and the United States (sharing 65% of the global outsourcing market) software outsourcing market, there is still plenty room for developing the market. China's outsourcing software shared 50 percent of the Japanese outsourcing business, which is a relatively low profit ratio market(20-30 percent)and 30 percent of European and the United States outsourcing business, which is a relatively high profit ratio market (30-40 percent), but, the development of European and American market is in a speed pace.

The strength of China's software outsourcing service providers has enhanced, the market integrated level has increased. But with India, Ireland, and other major powers software outsourcing service providers, the scale of China’s software outsourcing service providers is still small, less competitive capacity, and the imbalance of high skill workers’ structure

1. Analysis of the global software outsourcing market
1.1 Cost has driven the global software outsourcing industry developing rapidly
1.2 The contract award market and contract market of the world market

2 Analysis of China's software outsourcing market
2.1 The rapid growth of China's software outsourcing industry
2.2 The marketing structure of China's outsourcing contract award
2.3 The development of fast growing outsourcing market in Europe and America
2.4 The increasing of market integration
2.5 The software outsourcing business has transferred to the mid-size cities in central and western of China

3. The weakness of China's software outsourcing industry
3.1 Small-scale, less competitiveness
3.2 Imbalance of high skill workers’ structure
3.3 The limitation of SOA

4 Analysis of three key companies
4.1 Dongruan
4.2 Wangxin of University of Zhejiang
4.3 China National Software & Service Co., Ltd
4.4 Inspur


Chart

Figure : Forecast of CAGR of the world, India and China's software outsourcing industry between 2007 and 2009
Figure : The growth of China's electronic information industry, software industry, software outsourcing industry in the first half of 2007
Figure : The Structure of the global outsourcing contract award market
Figure : The Structure of the global outsourcing contract market
Figure : The marketing share of China’s software outsourcing companies of the world, Japan and the U.S.
Figure : The structure of China's outsourcing contract award in the first quarter of 2007
Figure : The operating income, gross profit ratio and net profit of Dongruan in the first half of 2007
Figure . The constitue of business sectons of Dongruan in the first half of 2007
Figure : The income and profit of different business sections accounted for of Wanfxin of university of Zhejiang’s total income and profit in the first half of 2007
Figure : The performance of China National Software & Service Co., Ltd in the first half of 2007