At present, the great depreciation of US dollar has affected many industries in the world, this has brought a great currency challenge to Chinese software outsourcing enterprises. Chinese software outsourcing enterprises is suffering pressure from two sides, one is from the appreciation of Chinese RMB, and the other is from the rise of consumer price index (CPI). As we know, the payout of Chinese software outsourcing enterprises is made up by Chinese RMB, but the income is made up by US dollar, as thus, the profit space of enterprises will be squashed.
According to the research, it is the best time for Chinese software outsourcing enterprises now. IDC predicts that in the next few years, the global software outsourcing market will be expanded greatly, especially Chinese market. Till 2010, Chinese offshore software outsourcing market will increase about 37.9% with 7.03 billion US dollars which is accounting for 8.4% of the global software outsourcing market. On the occasion, China will become the strongest rival of software outsourcing industry in North Asia and also be the global R & D center.
However, this is also an alarming time. The quick appreciation of Chinese RMB is working on the development of Chinese software outsourcing enterprises. Here is the currency change from US dollar to Chinese RMB in June, 2008 (See Graph 1).
Graph 1
In fact, software outsourcing is a labor intensive industry, the human resource cost is the biggest costs, but facing the profit space condensation caused from the great industrial environmental change in the world, the domestic software outsourcing industry has the possibility of grads shift. In this situation, Chinese software outsourcing enterprises have started to seek for the right way to reduce the loss.
SDIT is also suffering such affection, however, we are an united team with years of experience in software outsourcing industry. We will pay more attention on high-end businesses and expand both domestic and overseas markets, SDIT strongly believes that "Chance favors the prepared mind".
