Computer science and software technology, as the core competitiveness of the country's own forests, has been consensus on the world. The continued improvement and development of this core competitiveness will depend on IT manufacturing, software and IT-based services and business process outsourcing industries. We can compare the total industries to the bottom of the pyramid, compare computer science and software technology as the pyramid, and the high and bottom area is proportional to the relationship. my country's IT hardware manufacturing and integrated circuit technology and computer technology have proven the above relationship. Similarly, this relationship will also be again confirmed in software technology with IT based software, service, and business process outsourcing industries.
After the 2000 Document No. 18, my country's software industry has developed rapidly with average of more than 30% of the year. Today, in reviewing and inventory of our industrial performance, you should first put industry concepts and international parallel rails, "software and IT-based services and business process outsourcing industries" (hereinafter referred to as: software and IT outsourcing industry) this concept, replace us Common "Software Industry" concept. In addition, we must understand that "Software and IT Outsourcing Industries" is the logistics industry, based on network and communication facilities, this industry has been seamlessly docked in the world, that is, this industry has been implemented. Global integration. We can see that Xi'an's business is a US car chain seller, the background processing of the document takes only 18 minutes, and the US car purchaser, it is difficult to know the car purchase contract they signed, it is in its salesman. Coffee At the same time, it is handled by Chinese employees far from tens of thousands of kilometers. Indian companies and US users have taken time difference to achieve 24-hour continuous development and testing. It can be said that the software and IT outsourcing industry is an international industry. Regardless of whether you admit that my country's software market has been fully open, 50% of the domestic market share have been made by foreign companies, so our industries must also be targeted by the global market to get the market share of us.
The development trend and cost of global economic integration, forcing European, US companies to change business processes and carry out strategic resource reorganization, IT and network communication technology, so that software and IT outsourcing industry, quickly realize offshore, composite growth The rate is 28-40% year. Among the global software and IT outsourcing industries, India has a leading ahead of 50% of the share, China, Malaysia and other countries, followed, will play an important role in the future market segmentation. The domestic value-added part of the manufacturing process is only 2-3% of the total scale, and the highest will not exceed 5%. The domestic value added in software and IT outsourcing industry is almost 100%, that is, $ 10 billion software and IT outsourcing exports, which are equivalent to the manufacturing industry's 200 billion US dollars processing exports. The software and IT outsourcing industry will become the "China Manufacturing" after the manufacturing industry, and it will showcase the opportunity of "China Manufacturing".
First, US, Japanese Software Market Analysis
The United States, its software and IT outsourcing industry account for 40% of global software and IT outsourcing industries. The market size of US software and IT outsourcing industry in 2003 was $ 200 billion, of which the offshore part was 10% of $ 20 billion, and India received 60% of its market share. It is predicted that the 2007 financial year, the market size of the US software and IT outsourcing industry will reach $ 300 billion, of which the offshore share will rise to 24%, and its offshore outsourcing takes close to $ 70 billion. India believes that India can get 50% of its share, namely $ 35 billion, and the other half will be divided by its competitive countries. According to the analysis of A.T.KEARNEY, China is ranked first with the Indian competitive country.
In the United States, the business process of the company can be divided into three types: one, is a business with background management, such as IT, human resources, finance, and finance, facility management, etc., this part of the business is best for outsourcing. Second, it is operational business such as manufacturing, logistics, customer service and development, etc., this part can decide whether to make outsourcing according to business strategies. The last part is a key business process with core competitiveness. It mainly includes: the research of core technology, main product design and development, market and marketing, etc., in general, this part is not implemented. The US software and IT outsourcing market are open, and suppliers who undertake outsourcing have equally competitive business mechanisms. Suppliers in the following aspects will be used as the main points of assessment outsourcing capabilities: employee English, the experience of the US project, the scale of team, in the United States, cultural differences, process control and quality management capabilities, marketing ability Political and war risks, intellectual property protection, sound legal systems, government support, cost advantages, education and human resources supply capacity, commercial brand, etc. Compared with India, our software companies have not accumulated enough competitive advantage, which is why our companies cannot directly compete with Indian companies in the US market. In 2004, my country's software and IT outsourcing export performance (customs export statistics), China's software companies, the total amount of US software and IT outsourcing business is still small, but has seen a significant growth trend.
Japan, offshore software outsourcing is time to the US night, still staying in software detailed design and code conversion phase, IT-based service and business process offshore outsourcing has not really started. In the past two years, Japanese software offshore outsourcing is faster, with $ 184 million in 2002, 2003 is 445 million US dollars, an increase of 145%. In the Japanese offshore software outsourcing market, China's share has exceeded 50%, and the other package state has India, Vietnam, etc. However, the total size of the offshore outsourcing only accounts for less than 1% of the Japanese software service market. It should be said that only more than 50 Japanese companies that have just started, and have successfully launched the software outsourcing.
In the Japanese society, due to the influence of a single national culture, the relationship between enterprises is a pyramid type. Enterprises located at the top of the pyramid are in dominance, and companies that form directly supply relationships are called the first-level contractor, and companies with direct supply relationships with first-level contractors are called secondary contractors, so on, upstream and downstream companies are long-term The business forms a trusted inter-office and interpersonal stability relationship, but has a fixed business path, which creates a close relationship between Japanese enterprise unique pyramid structures. These relationships are mainly manifested in: 1 semi-finished supply production series; 2 circulation series of products; 3 funding finance series.
Such a business relationship is also existing in the software service area. As a general contractor, enterprises have undertaken projects from customers. After the overall design and task cut, the module work will be submitted to several secondary contractors, and the second-level contractor will also find three or four-level contractors. Enterprises help it complete the module design, code conversion, or test work.
In Japan, only more than 30 enterprises that can be used as a general contractor to undertake large customer system, and more than 300 companies developed by large and medium-sized customer systems can be undertaken. Most Chinese companies entering the Japanese market, currently in the Japanese software market is a three-level contract or a four-level contract.
When Japan's end users are informed, not only I hope that the general contractor has a deep industry knowledge and business consulting capabilities, I hope to have a good trust with my own enterprises, but also hope that he has enough funds to resist risk and Japan is responsible for legal responsibility locally. Therefore, general contractors are generally large in Japan. Moreover, due to the ulcaleism of Japanese culture, customers will not clearly express their needs with strict documentation, but the general contractor is based on the customer's business characteristics, while communicating with customers, and the system consulting, planning ,design. Therefore, such a project is difficult to truly implement offshore outsourcing. In Japan's software outsourcing market, the general contractor is required to understand each other's business details, and there is a twin child, so overseas manufacturers cannot enter Japan's total contractor sequence. This also leads to the closure of the software and service outsourcing market in Japan. At the same time, Japan's grading development system enables upstream contractors, must provide detailed job indication files downstream contractors, which provide favorable conditions for detailed design and code-converted offshore outsourcing. Similar cultural and common square characters and grading outsourcing are the root cause of 50% of the software service market in Japan. Therefore, in the next decade, the Japanese software service market will still be the rapid growth space of our offshore outsourcing market. Second, the opportunity and challenge of the Indian software industry
India, the status of the world software industry has long been ignored. If you think the development of the Indian software industry is completely dependent on European, beautiful outsourcing order, then you only see its past. In the face of the future, the Indian software industry is ready to go to the value chain. "The Thinking Model of Third World will eventually become history. India's software exports have started from zero from Zero in 1980, and they have experienced twenty-four years. Today, its software and IT outsourcing industry are facing more than 100 countries and regions around the world, 60% of which are exported to the United States, also plays an important position in other English national markets. Between 1991/92 to 2001/02, the annual average annual growth rate of India software industry reached 45%, making India a large country in software and IT outsourcing industries. India's current software and service enterprises have nearly 3,000 companies, more than 500,000 people, their top ten software and service enterprises have more large-scale, and the largest enterprise has approached 40,000. The company's earnings are more than 20%. As can be seen from the following chart, since 1996, Indian software and IT outsourcing business have maintained a rapid and stable growth momentum. Due to the limited domestic demand, India's software and service companies will use the international market as their own goals.
From 1981 to 1982, India Software and IT outsourcing industry exports doubled, reaching $ 13.5 million. From 1988 to 1990, India Software and IT outsourcing industry have doubled again, reaching $ 128 million. In 1996, India Software and IT outsourcing industry exports exceeded 1 billion US dollars in 1996-1998, and the Indian software and IT outsourcing industry exports doubled the third time, reaching $ 2.6 billion. Through these three times, India laid their own foundation and visibility in the international software market, and became a recognized software and IT outsourcing industry. With the full support, high-quality, low-cost human resources advantages and strategic transformation on the export-oriented strategy, Indian software and IT outsourcing industry exports have been rapidly developed.
After 2001, with the saving of the global network boom, the technology stock is hard to favors, the global economy is in recession, the engine of the global economic growth, the weakness of the US economy, highly relying on the US market and IT outsourcing export business is hit, The growth rate has dropped, but still develops with an annual average growth rate of more than 20%.
According to the actual performance of 2003 and 2004, India's software and IT outsourcing industries exceeded everyone's expectations.
In the past, we understood that India's software and IT outsourcing industries, always associated with solutions, code conversion, data entry, and lack of core technologies. Today, in 20 years, the main software companies in India have become competitive solution providers in the North American market and multiple applications. Some Indian companies and the United States have the main consulting company to form a positive competition in the market. They have accumulated their experience and core technology, and some Indian companies began to enter the software product market. In terms of process management and quality control, the experience accumulated by India has been recognized by the industry. Rapidly growing Indian software and IT outsourcing industries are also facing crisis and challenges. 1 Improvement of speed and industry quality, so that human resources, especially senior talent, resulting in the increase of more than 15% of the salary level, and the employee's job is high, maintaining two digits, and the cost of human cost is rapid. 2 is the cause of regional geopolitical instability and religious problems, so that the contractor lacks security, producing all eggs in a basket. 3 As the Software and IT outsourcing industry in Asia, it is difficult in the market in Asia, in particular Japan, South Korea, and the Chinese market due to cultural and language problems.
Third, how many business opportunities are China software industry?
China, has a rapid growth of software and IT outsourcing industries with total India, domestic demand, providing Chinese companies with a good market space, but because our industrial launch time is later than Japan and India, the company quality and Japan And India, there is a gap. In 2000, the state has introduced the 18th document, which laid a solid foundation for the rapid development of the software industry. In 2001, the state established a national software industry base in 11 provinces and municipalities. In 2003, six national-level software export bases were established. It also issued the corresponding technical preferential policies and software issued according to the spirit of documents No. 18. It is confirmed as the country's key industry.
Over the past five years, the software has developed rapidly with more than 30% of the year. As of the end of 2004, the software companies have reached 9,000 (including nearly 40 listed companies), more than 600,000 employees, 2004 software and IT outsourcing Total sales expect to reach $ 25 billion. Software exports have developed rapidly in the past three years, with an annual growth of more than 50%, Beijing, Shanghai, Shenzhen and Dalian become a high-speed growth area of software exports, although export accounting for less than 10% of the total industrial capacity, but has been in terms of export and development It is equivalent to India in 1995-1996. In the future, China's economy will maintain GDP 7-8% of the speed and steady time, and China should become the third largest economy in the world, most of the world's 2000 companies will settle in China. Will be one of the world's largest software markets.
Over the years, it has been relying on the software companies that have developed in China, but also delayed the pace of entering the international market because it is too dependent on domestic demand, which restricts the improvement of corporate quality. 1 is the scale, most software companies are within 100 people, only 2 companies, more than 2,000 companies, more than 20 companies are around 20. 2 The expertise of most companies is limited to software technology, and it is possible to provide users with less business consulting, lack of the strength of providing large project overall solutions, this part of the market is taken away by foreign companies. 3 Software talents cultivated by education systems can not meet corporate needs, and enterprises have excessively trained and have increased the cost burden of enterprises. 4 Due to the size of the company, most companies do not have a large complex project process management and quality control experience. 5 There are only very few software companies, with talents in international business practices, and have multinational outsourcing experience.
A well-known IT consulting company believes: "China's software companies should enter the market channels of multinational companies in China, enter their national market, and Chinese companies can start by software, and they will enter their own Market. With a step-by-step approach, you have accumulated your international business experience, quickly form a scale. Master the management capabilities of large complex projects, improve quality control levels and user experience. This is an insurmountable important learning process. When you have it When you have a positive competition with other companies in the international market, you really have the ability to achieve high-end application projects in the Chinese market. "The software market is open, and China's software market has long been part of the global market. Or, software and IT outsourcing market and industries living in this market, according to their own characteristics (except for special circumstances such as Japan), it is basically no longer subject to country restrictions, but in accordance with General Business Rules . Even in Japan, it is also due to the cost of 35% -40% decline, and accelerates the low-end business out of overseas.
China's software companies should grasp this business opportunity to develop this business opportunity to develop the global software and IT outsourcing business, connect the United States, Europe and Asia (mainly Japan and South Korea) markets to a global market to become a global market. The capabilities of solution providers and software product development and manufacturers are targeted, and China's manufacturing of IT hardware is a template, and the brand created in software and IT outsourcing industry.
We have won reputation in Japan software and IT outsourcing market. Although our company is difficult to enter the Japanese market's general contractor sequence, we first entered the backbone enterprise of the Japanese market, and have begun to face users with Japan's general contractors, starting from demand to intervene, participating in design and contracting detailed design and Development and testing work, and bear the later service, IT-based business process outsourcing for the Japanese market has also begun. The Japanese market potential is huge, which accounts for 10% of the global market, and the competitiveness of Chinese companies in the Japanese market is equivalent to Indian companies in the North American market. Today, Japanese software and IT offshore outsourcing only account for less than 1% of its total market, and more than 50% of growth provides our company with huge market development space. In the Japanese market, we can exercise the team, get stable cash flow and profits, quickly expand the scale of the team and enhance the quality of the enterprise. In the future, when we were in autumn with Indian companies in the North American market, Japan should still be one of our major markets.
We have a competition and mutual demand between India, and there are also space in cooperation. Today, we have survived in their respective markets, respectively, have not formed positive competition. However, with each other, we will become the most important competition partner in the global software and IT outsourcing market. Today, Indian companies hopes to enter the Chinese market, disperse the political risks of the land, suppress human resources costs, enter Northeast Asia (Japan and South Korea) and the Chinese market. At the same time, we also hope that through cooperation with Indian companies, we train out a team that adapt to the international market, enhance our company's process management and quality control capabilities, understand the channels and business rules of entering the European, US market, and accumulate the experience of the global market. . Our companies and Indian companies will achieve the purpose of joint improvement through communication, cooperation and competition.
European, US software and IT outsourcing market, is the core of the global market, US has accounted for 40% of the total market, and Europe accounts for 30% of total. Entering the European, US market is the ultimate goal of emerging software countries. China is the most powerful country in all competitors. The main software companies in India have a consensus: "China will be the most important competitor in India in the European, US market." Today, China's companies are mainly to obtain orders from Europe and the United States through multinational companies in China's branches, research and development centers. However, it is worth considering that in the past two years, some companies have cooperated with multinational companies for a longer period of time, which has been directly entered into the European and US market. Some of these companies (although few), in Europe, the United States market quickly developed, achieved impressive performance. It is particularly worth mentioning that in the face of IT-based services and business processes in the European and US market, it has started, and it has developed rapidly, and there is a new space. Our many companies are still not suitable for the international market, and we have a certain gap with India. With multinational companies to transfect in China, study experience in cooperation with Indian enterprises, and enter the European, US-based services and business process outsourcing markets. It is three starting points in the European market. It is difficult to start, and after we spend hard study period, we will have a well-venting growth effect as we develop in the Japanese market. We should no longer emphasize the internationalization of the software industry, because the software and IT outsourcing industry is the global industry, it does not need the flow of goods, not limited by time and space, depending on the communication and network foundation. This industry survives in an open global market that is not subject to national boundaries, develops with global economic integration processes. We have opened our market, our software and IT outsourcing industry will also have a vast living space in the global market.
