Intechno China Inc.

The global economic meltdown impacted many of the clients of BT Frontline, which provides outsourcing services for the IT systems of docks and logistics companies. But its General Manager, Lawrence Low, is still satisfied with the company’s performance amid the financial crisis and confident about its future.

China’s service outsourcing industry, mostly about software outsourcing, bounced back in the second half of the year from a hard time of three months caused by shrinking demand from the global market, according to Yu Hengzhuang, vice president of Dalian Software Park.

“We have gained access to high-end market and recently entered the Middle East market, which more than offset the impact of the global downturn,” Low said.

“Our business not only survived, it grew and thrived,” Low said with a smile, keeping the exact figures as business secret.

RAPIDLY DEVELOPING INDUSTRY

The software outsourcing park in Dalian, the industrial hub in China, attracted 63 new clients in 2009, bringing the overall number of businesses in the park to more than 400, and the park’s total sales are expected to top 20 billion yuan, up 32.9 percent year on year.

The sales of Dalian’s software outsourcing business grew from 200 million yuan (29.3 million U.S. dollars) to more than 30 billion yuan in the past 10 years. A total of 700 companies are in the industry, including 300 joint ventures and more than 40 Fortune 500 companies.

In the first ten months, the industry’s sales in Dalian grew by33 percent to 33.7 billion yuan and its export grew by 34 percent to 1.1 billion U.S. dollars.

While Dalian has become a world famous hub of software outsourcing after Thomas Fridman compared it with Bangalore in India, another less known industrial hub with equally fast pace in east China’s Jiangsu Province, is taking shape.

The contract value of Jiangsu’s software outsourcing industry reached 3.28 billion U.S. dollars in the first 10 months of the year, a growth of 174 percent. The province has 2,470 companies in the industry, with 290,000 employees, according to statistics from the provincial department of commerce. continue reading…

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As businesses begin to host their IT systems in the cloud - instead of hiring outsourcers to maintain and integrate their systems - outsourcers could start to feel the pain, according to author and technology thinker Nicholas Carr.

Demand for corporate systems integration work - the bread and butter of some outsourcing companies - will dwindle in a world dominated by cloud computing Carr told the Google Atmosphere event in London last month.

Carr rose to prominence with the release of his book IT Doesn’t Matter in 2003, in which he argued IT is destined to be delivered as a commodity service that is invisible to its users, similar to the way that homes and businesses receive electricity today. His latest book is the The Big Switch. continue reading…

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ChinaSourcing: iSoftStone has conducted a series of mergers and acquisitions during the past several years. What is the driving force behind all these?
Li: Our strategy for developing in both size and strength is based on three engines. The first one is we are in constant effort to extend services for our customers, which is to say, we try to develop the capacity to provide varied kinds of services for every single customer; the second one is we are committed to serving clients from all around the world, namely, we are constantly exploring regional markets; the third engine is we are constantly improving ourselves in the industry that we have entered.
The mergers and acquisitions we conducted in the past all revolved around the three engines. For example, in order to expand our market in the United States, we acquired a Seattle-based company located near Microsoft continue reading…

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In a report by Canada-based research firm XMG Global, India and China were singled out as the market’s top revenue generators, pulling in revenues worth $48 billion and $28 billion, respectively.
According to Vincent Altez, Senior Analyst at XMG, India will account for 44.8 percent of the global market, while China will hold 25.9 percent. China seconds the list and generated revenue worth $28 billion. XMG named the Philippines as the third-best performing destination, growing at an estimated 21.7 percent to register $7.3 billion in revenues by year-end. India’s market share is expected to remain similar due to accounting adjustments following Satyam’s financial scandal and demand moving to other offshore countries. continue reading…

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Introduction

The Infrastructure Outsourcing (IO) market continues to evolve with offshore suppliers maturing as infrastructure service providers, enabled by remote infrastructure management (RIM) technology. As offshore suppliers mature and reach critical size, they see the need to target larger buyers to keep growing their RIMO practice at a healthy pace. This practice led to convergence of the traditional and offshore models. However, this move meant they had to start playing by rules long established by the traditional players. Offshore suppliers in this emerging scenario may be facing a “crisis of genre” that may restrict their growth unless they can strike a balance between targeting large buyers and staying away from playing according to traditional rules. continue reading…

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Introduction

Oil & gas companies represent a significant portion of the global economy today given their very large scale of global operations. According to the 2009 Fortune Global rankings, oil & gas companies occupy seven out of the top 10 positions, and account for over 70% of the total revenues in the top-10 list. However, despite their larger scale and broader global reach, oil & gas companies have lagged other verticals such as financial services and telecommunications in their outsourcing and offshoring initiatives. continue reading…

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As the global economy slows, many business software companies are seeing fewer sales opportunities as businesses cut software budgets and delay purchases.  Despite the current economic climate, there is still a large and growing market for business software in China.  An increasing number of US software companies are focusing on China market entry strategies and leveraging the knowledge of Chinese software outsourcing companies to aid with China market entry.
A recent study sponsored by Dextrys titled Marketing Business Software in China discusses the Chinese market for US business software.  The key findings from the study are: continue reading…

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India may still be the dominant destination in outsourced software development services. But it’s becoming a booming business in China. Earlier this year, the government chose 20 cities as outsourcing hubs to attract more international investment and provided them with tax breaks, labor hours systems and employment subsidies.
Over the past year, government-backed initiatives have seen software outsourcing organizations expand from Beijing and Shanghai into other cities including Shenyang, Chengdu and Jinan. continue reading…

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The on-going economic crunch has left businesses across the globe looking for ways and means to get quality work at lower costs. In such difficult times, outsourcing services software development has been vouched for by many companies including Fortune 500 companies.
Are you interested in finding a software development company? Have you constantly tried to locate an expert in software development and none of the existing companies seem to measure up to your expectations? If your answer to either of these two questions is affirmative, then perhaps you might be interested in reading more on the subject. In this article, you can discover plenty of tips on choosing the right software development company and what should you expect. continue reading…

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Report Highlights

In 2008, affected by unfavorable global economy, especially American sub-prime mortgage crisis, dollar’s depreciation, export-oriented economic development model is affected; meanwhile, China’s labor force’s cost increase and rapid price rising, many manufacturing-led areas in China face great survival pressure, such as Yangtze river area and Pearl River delta. From the perspective of regional sustainable development, governments are adjusting industry structure. As one of modern service industrial highlights, software outsourcing attracts local governments’ strategic attention.

Outsourcing service providers seek steady, breakthrough, and maintain growth and seek new opportunities through improving their own competitiveness. On one hand, it is necessary to integrate resources through industry alliances; on the other hand, it is necessary to expand the market and create broader development space through optimized business layout and market layout. continue reading…

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