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China Software - World Class Low Cost Manufacturing
Traditionally, China has been widely known for its world-class low cost manufacturing facilities. But the ongoing battle to make China a ‘hi-tech’ service-based economy has fuelled growth in the domestic software industry in recent years. The factors that are encouraging the software players (both domestic and foreign) to enter into China’s software industry include government support, easy access to rapidly developing IT infrastructure, vast domestic potential and availability of low cost resources, says "China Software - World Class Low Cost Manufacturing”, the latest research report by RNCOS.
According to this report, the Chinese government has made continuous efforts in the form of IT investment, construction of software parks, and provision of quick approvals to secure international investment to accelerate the China Software industry at a rapid pace.
The potential of the industry is not only limited to the domestic consumption, foreign majors are also eying the industry as viable software outsourcing destination. In this regard, this report thoroughly studies China software industry by highlighting its driving factors and major challenges. It also provides an insight into the software industry by verticals and studies the key opportunity areas that have emerged due to the fast growth of the software industry in China.
Key Research Findings
- China's software industry grew at a CAGR of more than 39% over the period from 2001 to 2007 and is further anticipated to grow at a CAGR of nearly 22% through 2012.
- Rapid growth in IT spending among various industrial segments, including government, banking and manufacturing are likely to propel the domestic software industry in near future.
- The ongoing large-scale endeavors for 3G deployments are expected to fuel growth in the demand for 3G telecom software across various application platforms.
- Expanding broadband infrastructure with increased Internet penetration among Small and Medium Businesses (SMBs) will help the SaaS market to grow at a CAGR of approx 44% during 2008-2012.
- The software outsourcing market is anticipated to grow at a CAGR of nearly 34% from 2008 to 2012.
- The current perception of lack of required talent in coming few years is urging the foreign IT training and education centers to expand into China’s IT education market.
Key Issues Analyzed in the Report
- What is the current status of the software industry in China?
- How is the future outlook of the industry?
- What are the emerging trends in China software industry?
- How does software spending and adoption status in China vary by vertical industry?
- Which areas of the China software market are expected to show the fastest growth over the next few years?
- Where do Chinese software companies lack in serving MNCs?
- How big is the China software outsourcing market and what are its future prospects?
- Who are the key players in China software industry?
Research Methodology Used in the Report
Information has been sourced from various credible sources like books, newspapers, trade journals, white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.
RNCOS industry forecast and analysis is based on various macro- and microeconomic factors, sector and industry specific databases, and our in-house statistical and analytical model. This model takes into account the past and current trends in an economy, and more specifically in an industry, to bring out an objective market analysis.
Our industry experts study the relationship between various industry and economic variables to ensure the required accuracy and desired check on the quality of data and information given in the report.