The recently released "quarterly monitoring of China's offshore software outsourcing market in the second quarter of 2008 " data shows that China's offshore software outsourcing market in the second quarter in 2008 reached 4.164 billion Yuan, an increase of 22.65 percent, and central rise by 6.04 percent.
There¡¯re not much volatility about the contract market: Japan remained the largest contract, and the market share is up to 51.1 percent, 0.5 percent lower than that in the previous quarter, with little changes, The proportion of Japan's contract volume to China in its demand for IT services is still very small, beside software outsourcing, there¡¯re good prospects for Japanese enterprises in China in the future, and even for its local enterprises to the needs of China's IT outsourcing vendors in the market. Europe and the United States letting the market share of 31.4%, by 0.9% increase compared to last quarter, the growth of the United States and the European markets is still very good, such as Germany, with its developed manufacturing, is in great software demand. Hong Kong¡¯s share of the contract is 9.0 percent, a slight decrease of 0.2% than the Central, remained slow downward trend, but Hong Kong's financial industry has developed to maintain its software demand.
For the access package market, the top three domestic access package markets are the north, northeast and the east, with respective share of 34.4%, 22.2%, 16.1% market share, there¡¯re rapid increase in the north and northeast China, particularly in the northeastern region, such as Dalian, which has attracted the national attention about the Japanese software outsourcing industry, while Beijing is an important undertaking district for business from Europe and America, Europe and the United States to gradually increase the business, even more than business from Japan, so the group's main workplace has been gradually moved from Dalian to Beijing. And in east China, although the growth of the market size in Shanghai is general, because of policy support and concentrated talents, growth in Jiangsu and Zhejiang are better. The fourth and fifth are respectively in South China and Southwest China. In the past, the growth rate in the southwest is very high, particularly in Chengdu and Chongqing, many software outsourcing companies considered the two places as the the next step of this expansion of important production bases for research and development. However, affected by the earthquake, the proportion in the southwest in the second quarter is much smaller than that of last quarter.
Research definition
Offshore development services: It means that domestic enterprises, accepted by overseas enterprises, to provide some or all of software development projects to foreign enterprises, the development not only limited to design, coding, testing, and so on. In this study, the software outsourcing is an open software outsourcing, not including closed-end software outsourcing, here the closed-end are those letting the Group's internal projects but not to tender, foe example, South Korea outsource the integrated IT companies Software projects to other groups within the company, and its data is not accounted for the results of this study.
