Chinese software industry has emerged as the fourth largest in the world on account of strong government support, favorable business environment and growth of other industries.
An Official from the Ministry of Industry and Information Technology said that China has emerged as the fourth largest software developer in the world, as reported by China View.
The ministry also revealed that the share of China in the global software market surged to 8.7% in 2007 against 1.2% in 2000. The Chinese share grew by over 30% with an annual produce of 583.4 Billion Yuan (US$ 84.5 Billion) last year.
The Chinese software industry has significantly grown, mainly due to rapid growth in such industries as finance, petrochemical, telecom, petroleum, railway etc. Moreover, the software enterprises have grown much wider and deeper than the previous single software development.
The emergence of China as an attractive investment center in software industry lies in the fact that the country enjoys the benefits of low labor and production cost, along with huge talent poll. Chinese people lay more emphasis on education. Besides, as the development of software turns from innovation-oriented to service-oriented, a huge educated population of china makes it an attractive destination to start software development operations.
The government of China is playing an important role in the growth of software industry. It has made concerted efforts to improve the infrastructure to fully exploit its potential. Besides, it is supporting the industry by making considerable investment, building software parks and giving immediate approval to international investment in the industry.
Along with favorable business policy environment by the Chinese government, an important step to reduce the gap between software industry’s output and demand is to link the country’s business and development with the development in the software industry. It will help in upgrading and promoting the software industry in the country.
A Senior Research Analyst at RNCOS said, “China is famous for its low cost manufacturing facilities. The efforts to transform Chinese economy into a hi-tech service-based economy have resulted in growth of domestic software industry in recent years. The Chinese software industry is at the nascent stage but is growing rapidly. Moreover, several industrial verticals are embracing IT infrastructure across the country and helping software industry to exploit its potential.”
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