20 model cities for outsourcing software like Dragon battle



"For us to do software outsourcing enterprises, this is good news." February 9, Evans Company (NYSE: VIT), President Chen Lifeng interview, his excitement.

Early February, the State Council issued "on the promotion of service outsourcing industry problems reply", approved by Beijing, Tianjin, Shanghai, Chongqing, Dalian, Shenzhen, Guangzhou, Wuhan, Harbin, Chengdu, Nanjing, Xi'an, Jinan, Hangzhou,Hefei, Nanchang, Changsha, Daqing, Suzhou and Wuxi cities in 20 cities in China's service outsourcing model, and in the 20 pilot cities to implement a series to encourage and support measures.

Chen Lifeng told reporters that this is the first time proposed the establishment of national level from the software outsourcing model city, we can see that the state efforts to support the outsourcing industry and determination than ever.

In this regard, Suzhou Industrial Park Professional software and service outsourcing Dean Yang Dong believes that the software outsourcing "New Deal" of the launch of two main reasons.

First of all, such as software powers India, since 1997 the software outsourcing enterprises to tax policy, including the corporate income tax, business tax free, and when ten-year tax exemption expires, in turn deferred tax policy, so now in Indiasoftware outsourcing companies are still enjoying tax exemptions and business tax incentives, and our support for the policy is not enough, there is a policy bottlenecks.

On the other hand, the timely introduction of 20 software outsourcing model city, is an inevitable industry restructuring requirements, the financial crisis on the traditional processing and manufacturing industries had a serious impact, "the original change may be gradual, because of the financial crisisforce us to speed up the pace. "

Suzhou samples

The software services outsourcing model in 20 cities in the introduction, began brewing two years ago, and Suzhou is one of the typical sample.

Since 2006, the Ministry of Commerce has identified 16 service outsourcing base cities in China, and four China Service Outsourcing Demonstration Park, Suzhou Industrial Park is one of them.Suzhou Industrial Park, according to data provided by the software outsourcing business park in 2008 grew by more than 50%, 10.7 billion yuan output value of service outsourcing, including offshore outsourcing of 3.7 million.

In this high behind the Suzhou Industrial Park, the three outsourcing boom driven.

Suzhou Industrial Park, a software outsourcing company really started from 1995, when the Chinese Government and the Singapore government cooperation, the creation of a joint venture software outsourcing company, which brought the first wave of outsourcing to the park craze.Suzhou Industrial Park Economic and Trade Development Director Chen Xia, told reporters that the Suzhou Industrial Park was chosen as the outsourcing of pilot areas, and industrial park in the special identity of the new government to a great relationship, "is assigned to the park, many Singapore companies,gave birth to the demand for software outsourcing services. "

Since 2000, students have to return home and become a boom, led the second wave of software outsourcing services to the park craze."With the current development of the Internet of the east, a large number of IT professionals come here." Chen Xia said the industrial park was the software outsourcing business has been classified as high-tech enterprises, and it is not a separate category, which makes software outsourcing companies werethe number, the output value is simply not considered.

December 31, 2006, Suzhou Industrial Park was officially launched, "the pilot advanced technology service enterprise policy", which marks the Suzhou Industrial Park as a pilot area started outsourcing services, which also led to the third wave of outsourcing boom."It was a series of preferential policies in force, is given elsewhere can not." Chen Xia said, according to the first time on the park model business technology policy, free of corporate income tax of 15%; wages before tax, that is,This is a piece of wages, business tax free; and offshore outsourcing business tax free.

"The software outsourcing industry, the attraction of preferential policies to enterprises the most important, these policies have made in Suzhou, the pilot results. Today, these policies outsourcing software services in 20 cities continue to implement the model, the Suzhou Industrial Park can be considered as a pilot arealittle experience. "Chen Xia said.

Long as the dispute

In 20 Chinese cities to set up the service outsourcing model, the software outsourcing services, "as long battle," the direction of forward tilt in favor of China.

According to India's National Association of Software and Service Companies report, Indian outsourcing companies target mostly financial institutions, 50% of its profits from the U.S., 30% of Wall Street, back-office services outsourcing contracts to India, and the financial crisis, the software outsourcing servicesorders significantly reduced.India's largest software outsourcing giant three TATA, Infosys and Wipro, have shown a significant decline in profits, has exposed the other software outsourcing giant Satyam Computer Services Ltd. (Satyam) Gengrang huge financial fraud scandal, the Indian software industryworse.

In contrast, according to the "Shanghai Securities News" recently published study shows that the software industry, from January to November 2008, China's software outsourcing exports to 11.3 billion U.S. dollars, an increase of 48.1%.

Evans told reporters that President Chen Lifeng, China has gradually favored multinational software outsourcing business for three reasons: first, to avoid the risk of disputes between India and Pakistan can not allow multinational companies put all their eggs in one basket, the relative safety of China to Europeenterprises to be more at ease; In addition, China now has nearly 700 million university graduates, of which 18% of students are computer-related professionals, in personnel training, although the effect of an elite education in India, China to carry out the engineering colleges and universitieseducation, training a large number of outstanding annual computer-related personnel; the last of China's own economic development, so that multinational companies recognize the strength of China's software technology continues to improve, making China a huge market multinational companies need localization software outsourcing company.

As the first company listed in the U.S. software outsourcing company, Evans 2008, the annual income of more than 100 million U.S. dollars, 70% of its orders from the European and American multinational corporations.Layoffs in the Indian software giant under pressure of Japanese drama series, last year, Evans has hired nearly 2,000 new people, "in 2009 we will have a major recruitment program."

In addition, with the beginning of the official release 3G licenses, China entered the era of 3G communications, and data communications capacity, operational complexity, companies need professional communications software solutions.According to the Ministry of Information Industry and the data show that large-scale construction or 3G software outsourcing will increase 16 billion -240 billion market.

Outsourcing worries

Although China's software outsourcing industry is in full swing, but still a lot of worries.

Chen Lifeng said, the software outsourcing industry, the personnel structure shows an obvious pyramid shape, senior personnel extremely scarce, and such talent in China is very rare.Guangzhou Science Park, the manager of a software outsourcing company Always told reporters, "No one can cut the company's nine vice president, but must work to retain a general, when receiving the list, go to the job market at any time moveto ordinary programmers. "

However, if the vice president cut 9, the consequences is that "The next day, would be formed around 9 software outsourcing services company." Scale of these new companies often only twenty or thirty people, only two changed hands for big companiesbag, three bags or even four packages.

Suzhou Industrial Park Professional software and service outsourcing Dean Yang Dong that, in order to continue to develop the entire industry, we must support large-scale and even thousands of people over large enterprises, can have a strong enough competitive, "to today,Software outsourcing is no longer a simple software development problems, often related to finance, logistics, energy and other cross-industry-wide business solutions. "

Dong Yang suggested that outsourcing enterprises through mergers or acquisitions abroad to expand their scale, and the government can build the software platform for technical training for employees, is entirely domestic software outsourcing market behavior, lack of industry organization, the abovecan learn from India, the establishment of the National Association of Software and Services Companies, to develop industry standards, and regularly published industry reports, personnel training to help companies from overseas orders to contact the entire process.