China gunning for the US software outsourcing market
After years of doing software outsourcing for Japan, Chinese IT companies
are now raring to take to footshold on the US market.
Analyst IDC sees a growing software outsourcing business in China as
companies start to pay more attention on getting clients from the US
starting this year.
An IDC report on China's outsourcing market said outsourcing exports from
China reached 400 million US dollars last year. The market is expected to
grow at an annual average of 44 per cent in the next five years and reach
2.5 billion US dollars in 2008.
Two-thirds of the business in China at the moment come from Japanese
clients while less than 20 percent of revenues comes from the US market.
But trends seem to favor China. According to IDC, China is the next
favorite destination for software outsourcing next to India, Canada and
Ireland.
Yet, some Chinese firms still think that they are not as well-placed and
recognized in the US like the Indians. Some are suggesting that local
companies target first US companies that are based in China in order to
gain ground.
A crucial factor for China's emergence into the global offshore
outsourcing industry is government support.
The Chinese Government also selected 29 domestic software firms to
encourage them to develop their software outsourcing business in US and
European markets
