Intechno China Inc.

China International Software and Information Service Fair 2010 is scheduled to be held from June 22nd to 25th at the Dalian World Expo Center. After the financial crisis, a new round of global resource allocation and industrial specialization is
underway. As the only national software industry exhibition in China, CISIS
2010 is poised to contribute to the overall development and increasing
specialization of China’s software industry. Recently, the secretary general
of the organizing committee, Dalian Deputy Mayor Dai Yulin, accepted an
exclusive interview for the CISIS 2010.

The theme of CISIS 2010 is “Green Growth Powered by Software” continue reading…

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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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In 2009, the software testing and QA client industry user survey investigated over 800 contracts held by 2,400 of the top spending banking corporations and organizations globally.
Key findings include:
• Top honored firms included more Chinese suppliers in the last 12 months. In 2008, six of the top 10 software testing and QA firms were located in Russia and Eastern Europe. In 2009, several Chinese firms skyrocketed to the top ranks, surpassing both Indian and Russian competitors.
• Vendor dissatisfaction is uncommon in the software testing and QA services industry among top ranked suppliers, in particularly, strong dissatisfaction is uncommon in information technology outsourcing (ITO) sector, occurring in only 8.1% of technology-related industry’s client types, 16.3% in software and high tech company clients directly, and 21.3% of non-tech industry clients globally.
• Russian software testing and QA outsourcers surpassed Indian and other offshore firms in client experience.
• US clients are among the most satisfied with offshore software testing and QA services delivery from India and increasingly China (satisfaction with Chinese suppliers up 87.5% since 2007).
• Strong dissatisfaction with offshore outsourcing vendors was less than 8.8% of all surveyed clients with 2009 projects involving testing, QA and related outsourced software functionalities.
• Comprehensive services vendor arrangements from a comprehensive/end-to-end software testing vendor produce the highest satisfaction rates.
• Single vendors offering comprehensive QA services to software testing clients ranked highest in the overall survey by clients.
Innovation, trust, reliability and customization are the most important attributes influencing software testing and QA client’s satisfaction with their 2009 outsourcing providers.

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China’s legal system is moving in step with international IP protection standards. And the existing Chinese IP laws are not a new untested add-on. These laws are simply receiving more rigorous application in the context of the emergence of China’s new role in the world marketplace as the home of companies such as TCL or Huawei that are becoming international high technology leaders. As a signatory of several fundamental IP international treaties, with laws in place that meet the highest international IP standards, and with substantial enforcement of IP rights, China provides now greater protection of industrial and IP than most developing countries and emerging economies. The increasing amount of patent application authorization is a significant remarked sign of the Chinese progress of IP protection. continue reading…

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1996-10-11

Article 1 These Provisions are formulated to improve the investment environment, to better facilitate the absorption of foreign investment, to introduce advanced technology, to improve product quality, to expand in order to generate foreign exchange and to develop the national economy.

Article 2 The State encourages foreign companies, enterprises and other economic entities or individuals (hereinafter referred to as “Foreign Investors”) to establish Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and foreign-capital enterprises (hereinafter referred to as “Enterprises with Foreign Investment”) within the territory of China. The State grants special preferences to the enterprises with foreign investment listed below: continue reading…

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2002-2-11

Decree [2002] No.346 of the State Council

The Provisions on Guiding the Orientation of Foreign Investment are hereby promulgated and shall enter into force on April 1, 2002.

Premier of the State Council: Zhu Rongji
February 11, 2002

Article 1 In order to guide the orientation of foreign investment, to keep the orientation of foreign investment in line with the national economy and social development planning of China, and to protect of the lawful rights and interests of investors, these Provisions have been formulated according to the laws and provision on foreign investment and the requirements of industrial policies of the State. continue reading…

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Guo Fa [2007] No.7

The People’s Governments of all provinces, autonomous regions, and municipalities directly under the State Council, and all ministries, commissions and directly subordinate organs under the State Council,

In accordance with the general direction and guidelines for the development of the service industry as determined in the design of the Eleventh Five-Year Plan, several opinions on accelerating the development of the service industry are set forth as follows:

1. Fully realizing the major significance of accelerating the development of the service industry

The service industry is an important part of the national economy, and an important indicator for measuring the economic development level of a modern society. China is now in the stage of building a well-off society in an all-round way and in the progress accelerated industrialization, urbanization, market mechanisms and continue reading…

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                                                                                                                                                                                       2007-11-20

Service outsourcing industry, as an integral part of modern high-end service industry, is characterized by large bearing capacity of information technology, high added value, small consumption of natural resources, little environmental pollution, abundant employment opportunities (esp. for college graduates) and high level of internationalization, etc. The world is now witnessing the rise of a new round of worldwide industrial restructuring featuring service outsourcing, service trade, high-end manufacturing and the transfer of technological research and development, which brings new opportunities to the development of China’s modern service industry oriented towards the international market. To seize the opportunities and develop international offshore outsourcing business are conducive to the shift of the growth mode of foreign trade, expansion of the export of knowledge-intensive service, optimization of the mix of foreign investment and elevation of the quality and level of utilization of foreign investment. continue reading…

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Chinese government is to carry on a series of incentives to boost the nation’s services outsourcing industry, such as tax rebates and credit support. In order to launch more favorable policies for the services outsourcing industry, the commerce ministry will work with related government departments such as the Ministry of Finance and the State Administration of Taxation. It is believed that government support is very essential for China to promote the sector’s growth and develop itself into a top outsourcing destination.

Already a manufacturing powerhouse, China has boosting its services outsourcing sector diligently over resent years in order to move up the value chain and boost innovation in the IT sector. In 2006, its offshore outsourcing revenue grew more than 40 percent to $1.4 million, but that still accounts for just 2 percent of the global market. continue reading…

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As pointed out by AMR: “Offshore Outsourcing Isn’t Just India,” their recommendation is categorical: Companies with offshore experience should mitigate offshore outsourcing risk by moving beyond India. This strategy mitigates an overheated labor market in India is driving costs up and increasing attrition; other markets may offer a better cultural fit; and provide an hedge against geo-political risk, and AMR believe now is the time to establish relationships with an emerging market.

Global sourcing is seen as necessary to be competitive or even survive. Against this background, a significant number of countries are vying to get a piece of the global pie. These countries, with varying skills and capabilities and populations are the fourth ingredient in the battle for global delivery model supremacy. continue reading…

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