IT.Sohu.com 2005-02-04 08:34 Sohu IT news China's huge success makes people can't help but speculate: China's software outsourcing industry will soon be up and down in India. However, McKinsey has recently been found to study the Chinese software departments. China needs to have a threat to India in the software outsourcing industry to form a lot of time. First, China must consolidate its highly dispersed software industry, and cultivate the scale and technique necessary for large international projects. At present, China's efforts to China have not much efforts.
gap
One thing can be sure, China's IT industry is expanding healthy. In recent years, the number of special talents in China has grown very quickly. Since 1997, the annual income of the software and IT industry an average annual increase of 42% per year, with $ 6.8 billion in 2003. In particular, in this industry, in 2000, graduates who speak English (very important in the software outsourcing industry) have over 24 million. However, there are many shortcomings in China IT industry, causing these changes that cannot be completely utilized. Although the income of China IT industry is increasing, only half of India (Indian IT industry's annual income is $ 12.7 billion). The growth of China's IT industry is driven by domestic needs. Most customers are small and medium-sized Chinese companies. They need to specifically customize their customized software based on their needs. China's newborn software outsourcing business is only 10% of the total revenue of IT industry, while India's number is as high as 70%. Although the cost is relatively low, the operating gross profit of China Software Services Company is only 7%, while the average level of operating gross profit from the world's similar companies can reach 11%. The reason is that the project they take over is not large, but the quotation is relatively low. .
scale
To form a strong competition in the global outsourcing industry, China must consolidate its software industry. The market share of IT service companies in China is only 20%, while India's top ten IT companies share the market share of up to 45%. About 8,000 software service providers in China, including three quarters of less than 50 people, only 5 employees with more than 2,000 people. India's software service providers are less than 3,000, at least 15 employees with more than 2,000 employees, of which Tower Consultation Service Company (TCS), Wipro, Information System Technology Co., Ltd. (INFOSYS) It has been recognized internationally and has customers around the world. There is no suitable size, Chinese companies cannot attract top international customers. Because people usually believe that small companies are partners with relatively large risks and relatively high reliability. McKinsey's research found that only 12% of China Software Services considers mergers, acquisitions and alliances are a prioritized affairs. Among Chinese software service companies, there are not many experience in acquisition, although their culture has
It is obviously not very ideal for organizational development, but relying on this culture to fight new competitors. Instead, India's several companies are considering M & A Chinese companies to expand their business.
quality
The dispersion of the industry makes some other problems in the Chinese software industry, such as process control and product management is not strict. Only 6 of China's 30 large software companies reached CMM five or four, and 30 large software companies in India met this major. The survey found that a quarter of Chinese companies attempted to implement CMM quality standards, but more than half of companies said in their investigation, which did not have to be necessary, not feasible, or considered not worth it.
Talent
China's software service providers should also strengthen talent management. Most Chinese companies do not pay attention to helping employees grow, they have little to introduce equity, training projects or other incentives into talent management. The investigation of McKinsey found that the update rate in China's Software Co., Ltd. is as high as 20% per year, and the US has a strong IT labor market, but its number is only 14%.
other
With a larger scale and better talent foundation, China's software service company will have conditions to solve other problems, such as the establishment of credible brands in the international market, develop specific industries, such as financial and restricting technology. In addition, pay attention to protecting the customer's intellectual property, to overcome the project-based short-term effect psychology, to be committed to providing customers with long-term services. (Zhang Tian) (Editor: Cai Jingtong)
