China's Offshore IT Potential

New report predicts 52 percent year-over-year growth in Chinese offshore outsourcing; long-term potential to displace India
by Demir Barlas, Line56

Monday, May 09, 2005
In March, a report from Horasis and Going Global Ventures predicted that, in the near future, China would displace India as the world's top technology outsourcing destination.

Now a report from Markets and Research lends weight to that prediction by estimating a 52 percent year-over-year growth for Chinese software outsourcing in 2005. Click here to find out more!

Research and Markets cites "continued government support, investment from foreign companies, and strong demand from Japan" as three factors that will allow the Middle Kingdom's global IT outsourcing share to grow.

It will be interesting to observe whether China, already the world's workshop in many ways, departs from India in focusing on exporting software products as well as services. Research and Markets notes that China is already doing so, particularly to Japan, while in India even the largest IT companies focus more on custom development for global clients than on packaged applications.

Research and Markets believes that China will develop and export software more aggressively. As the company concludes, "2005 is a year worth watching in terms of the development in security software, management software, middleware, collaboration software, and software outsourcing."

Line56.com: China's Offshore IT Potential