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The Report of China's Software Outsourcing Market of 2007
China Market Report, July 2007, Pages: 26
In 2006, China’s offshore software outsourcing market reached US$1.43 billion (about US$ 50 billion of the world), an increase of 55.4 percent year-on-year. This is according to the prediction of CCID that China’s offshore software outsourcing market will achieve US$7.028 billion by 2010, accounting for 8.4 percent of the total global offshore software outsourcing market. And the CAGR (compound annual growth rate) will be 50.2 percent in China (19.5 percent CAGR for the world).
At present, China’s outsourcing software shared less than 5 percent, 10 percent and 1 percent of the global total, Japan (sharing 10% of the global outsourcing market) and the United States (sharing 65% of the global outsourcing market) software outsourcing market, there is still plenty of room for further market development. China’s outsourcing software market shared 50 percent of the Japanese outsourcing business, which is a relatively low profit ratio market (20-30 percent). Furthermore, the European and United States outsourcing business which accounts for 30 percent of the global market, is a relatively high profit ratio market (30-40 percent). The development of the European and American market is also in a rapid pace.
Overall the strength of China’s software outsourcing service providers has enhanced and the market integrated level has increased. But in comparison to India, Ireland, and other major power software outsourcing service providers, the scale of China’s industry is still small, with less competitive capacity, and with an imbalance in the high skill workers’ structure.
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