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Software Outsourcing Industry, A Prelude To Pull Shuffle
The financial crisis, export-oriented business software outsourcing industry, truly feel the "winter chill."
HiSoft Vice President, Chief Learning Officer anshin In an interview with China Economic Times interview, said that since last year by the revaluation of the RMB, the new Labor Law and other factors, China's software (600,536, stock bar) outsourcing business costs rise profits downward trend has emerged, and this year's global financial crisis had caused the outbreak of the software outsourcing industry even worse.
"At present, the prelude to the outsourcing industry consolidation has already started." HiSoft Group chairman Sun Cheng-Yaw has predicted that China now has 3,000 software service outsourcing enterprises in the next five years, and perhaps will become 30.
"Financial people is better than financing"
"There is no doubt that this is indeed the global financial crisis adversely affected the economic situation. In this form, to maintain a favorable cash flow and maintain the normal operation of the business is being affected by the most important." Strategy of Microsoft China R & D Group Cooperation Department, senior director of Shen Yuan-ching in the interview with this reporter, said to cut IT spending is only natural means. Wall Street, tens of millions of original items and even billions of dollars in orders, is now rare.
The study data show that the appreciation of the yuan for every 1% of the software export industry profits will be reduced 0.7 percentage points. Since July 2005 to July 2008, according to data from the China Foreign Exchange Trading Center, three years cumulative appreciation of the RMB rate has exceeded 20%. This is as a cost in RMB-denominated, U.S. dollar-denominated earnings of software service outsourcing industry, led directly to a serious corporate profits shrink. Last year, China's software outsourcing service market growth from 2006 of 55% to 40%. The first half of this year, China's software outsourcing market grew 25 percent, a decline of 8%.
"China's software outsourcing service industry is facing winter survival. The one hand by the financial crisis, industry profits are sharply reduced; the other hand, the growth rate of software outsourcing companies continue to increase. Although the overall strength of the entire industry in the rise, but not conducive to nurturing the brand. "IDC senior analyst Li Rong analysis.
However, many software outsourcing companies in China and lack of "emboldened" in far more than these, the more important point is the industry's lack of talent. The software industry is a relatively strong dependence of talent the industry, the current talent shortage and talent structure is irrational, the impact of China's software outsourcing has become an important factor in service development.
"To do great things next big orders, the most important thing is to find a suitable and capable person." Anshin said. Throughout the software outsourcing industry professionals are eager desire, "financial people is better than financing."
International Training Division in the soft-Jiang Wei, general manager of travel also to newspaper reporters that the large-scale software development is a systematic project that requires design department, testing department and project management of the multi-party cooperation. Present, China's software talent structure is irrational, has become a bottleneck restricting industrial development. To break this bottleneck, the key is to change the personnel structure, develop a sound to adapt to the needs of China's software industry talent system.
"Economic winter" opportunities
There are indications that the software outsourcing industry as a whole face a reshuffle of the situation is inevitable. Recently, the United States well-known Internet and IT research firm ForresterResearch survey found that a number of international bulk users are outsourced service providers to the pressure, to lower service prices.
CCW Research senior analyst at TSO Kai-bin analysis also told this reporter that the global financial crisis, while China's software outsourcing service industry created a certain impact, but compared to countries such as India, China is not strongly affected by the impact of the degree. For China's software outsourcing industry, though started late, a weak foundation, but the domestic market, huge demand for IT services, and how reasonable the release of domestic demand, so that turned into outsourcing services, companies need to make greater efforts.
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