Software and BPO

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SOFTWARE INDUSTRY IN CHINA AND CHENGDU

 

To some, the attraction of China as a favorite investment destination is in its cheap labor and production costs. But to many, it is the talent pool that draws them to China. As a country with a 5000 year history, Chinese have long since placed great emphasis on education. As software evolves from innovation-oriented to more services-oriented, Chinas great population and high level of education are turning China into a favorite destination to base software development operations.

Figure 4.1 China Software Revenue

(2001-2006)

 

As figure 4.1 shows, in 2006, revenue from China's software industry, which includes software products, software services and system integration, reached RMB 480 billion, 6 Fries that of 2001.

 

Figure 4.2. Chengdu Software Industry Revenue(2001-2006)(Unit:RMB billion)

 

 

Chengdu has a strong electronic industry base. Home to a large number of research institutes and universities, together with acomfortable living environment, Chengdu’s software industry is also growing very rapidly, and has in fact been picking up pace since 2004. As reflected in figure 4.2, the total sales of the software industry in Chengdu for 2006 reached RMB 20.6 billion, 52.3% higher than 2005.

 

Currently, compared to traditional IT cities, such as Beijing and Shanghai, the software industry in Chengdu remains relatively small. But in terms of growth rates, Chengdu is one of the fastest among China’s major IT cities.

 

 

It is also important to note that in terms of revenue, Chengdu’s software industry is far ahead its arch-rival in central and western region-Xi’an. In 2006, the software revenue in Chengdu was 85.7% higher than Xi’an.

 

Figure 4.3 Software Revenues of Major IT Cities in 2006 (Unit: RMB billion)

Figure 4.4 Software Revenues Growth of Major IT Cities in 2006

 

 

 

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