May 19, 2006
Study: Software outsourcing surges 44% in China
No single software outsourcing service provider in China dominates the still-maturing market
Recommend ThisChina's software outsourcing market increased about 44 percent in the first quarter of 2006 to 2.6 billion renminbi, or about US$322 million, from the same year-ago period, says a report from market research firm Analysis International.
Japan, which has a decade-long outsourcing relationship with China, still accounts for the majority of China's contracts, but orders from Europe and the U.S. increased slightly in the first quarter to comprise about 23 percent of the market.
No single software outsourcing service provider in China dominates the still-maturing market, with no vendor accounting for more than a sliver of the total market. Neusoft Group Ltd. holds the largest share, at around 3 percent, according to the research group.
The high-tech industry comprises the lion's share of China's software outsourcing market, followed by the consumer electronics, telecom and finance industries.
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