China aims to grow its $2.6 billion software outsourcing industry as much as six-fold to rival that of India's in the coming five years.
China's domestic software industry is bigger than India's and hardware industry is much, much bigger than India's, but they plan to build an even larger outsourcing industry. India's software companies exported $17.3 billion worth of outsourcing services in 2004, almost six times the $2.6 billion generated by Chinese software exporters. China's software outsourcing exports have been growing by more than 70 percent a year for the past three years and they believe they can sustain this level of growth far into the future.
There are fundamental shifts in the way software is being developed globally and the opportunities for Chinese companies to grab global market share are enormous. The back-end of software services can be hosted in Beijing, Harbin or Shanghaias easily as they can be hosted in San Francisco or San Jose, and for much less cost, too. China's 8,700 software companies generated 220 billion yuan of revenues in 2004, with exports making up only 10 percent of the total, according to the ministry of information industry.
Software revenues have been growing at more than 30 percent a year for the past five years, with 2004 growth reaching 34.7 percent, according to data provided by the ministry. China's software industry could grow even faster if the government cracked down harder on piracy. China's software industry has been hampered by piracy, which U.S. officials say is the worst in the world. China's government said April 21 that it imposed almost 8,000 penalties and fines on copyright violators last year. On Dec. 21, the government lowered the threshold for prison terms and made piracy of intellectual property punishable by as much as seven years in jail.
China's domestic software industry is bigger than India's and hardware industry is much, much bigger than India's, but they plan to build an even larger outsourcing industry. India's software companies exported $17.3 billion worth of outsourcing services in 2004, almost six times the $2.6 billion generated by Chinese software exporters. China's software outsourcing exports have been growing by more than 70 percent a year for the past three years and they believe they can sustain this level of growth far into the future.
There are fundamental shifts in the way software is being developed globally and the opportunities for Chinese companies to grab global market share are enormous. The back-end of software services can be hosted in Beijing, Harbin or Shanghaias easily as they can be hosted in San Francisco or San Jose, and for much less cost, too. China's 8,700 software companies generated 220 billion yuan of revenues in 2004, with exports making up only 10 percent of the total, according to the ministry of information industry.
Software revenues have been growing at more than 30 percent a year for the past five years, with 2004 growth reaching 34.7 percent, according to data provided by the ministry. China's software industry could grow even faster if the government cracked down harder on piracy. China's software industry has been hampered by piracy, which U.S. officials say is the worst in the world. China's government said April 21 that it imposed almost 8,000 penalties and fines on copyright violators last year. On Dec. 21, the government lowered the threshold for prison terms and made piracy of intellectual property punishable by as much as seven years in jail.
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