China Offshore Software Outsourcing Industrial Strategy Analysis

The export of software, especially export to Europe & America, is veryimportant to globalization of the software industry and the national economy of china.Because of the diversity of the labor cost in various countries, software service in thedeveloped countries of Europe or America had been more and more offshoring. Theoffshore software outsourcing has become a primary approach, to which somedeveloping countries with plenty of educated and cheaper labor embed in the valuenetwork of the global IT industry, participate in international division of labour in thecoming information economy times, and improve their status and competence inglobal competing.In this thesis, the definition of offshore software ousourcing is explained in depthfirstly, the mostly reasons and distinctive characters of offshore software ousourcingthen is revealed. Whereafter, I simply sum up the market volume of the softwareoutsourcing in Europe & America, and analyse the particularity of the Japanesesoftware outsourcing market. According to Heeks' model of strategic positioning fordeveloping country software enterprises, I review the development of the softwareindustry in our country. Contraposing to the fact of our country's software industry, Iargue the importance and necessity of our country's software export to Europe &America, and point that the most smart strategic positioning for our country's softwareenterprises is offshore software service provider. Through contrasting theperformances and characters of India, Ireland and Russia, which are three of the chiefrivals in global offshore software outsourcing market, the conclusion of this thesis isthat our country's software industry has reached the basic level of carring out thesoftware outsoucing project from Europe or America, but we have not distinctness ofthe competence. At the present time, we can not compete with those countries face toface, such as India, Ireland and Russia. Hence our country's software enterprises musttry to grasp the market opportunity of the middle and small clients in Europe orAmerica. At the same time, thest enterprises have to strengthen their competence,dredge up their potential advantages energetically, and avoid the direct competitionfrom forthgoers. Only in this way, they could win the space to survive and develop inthe market of Europe and America, the expect that our country's software export toEurope & America could come true early.At present, there were many wrong standpoint on export to Europe & America inour country's software industry, such as over-emphasizing the scale of softwareenterprises, experience of the market in our country and Japan, the dream ofinternationalization without any overseas presents, alignment, subcontract. In thisthesis, these five misapprehensions are corrected. I point out and analyse three of mostchief shortages in our country's software export to Europe & America, which are theshortage of consciousness, culture diversity, and incomplete value chain.In the fifth and sixth chapters, I study and bring forward the strategy for twolevels of industry and enterprises. The industry's strategys consist of positioningstrategy, compete strategy and constructing the value network. In view of the competein global software outsourcing market, our country's software enterprises must aim tothe middle and small clients, and enter into the horizontal market of skills. The abilityof understanding and handling the west culture must be strength in decision-makingand project communication. Industry agents should promote that the softwareenterprises structure their value network, and support that qualified and advantagedprofessional consulting companies participate in our country's software export toEurope & America. The strategys of enterprise's level include executives' recognitionand participation, and positioning advisably under careful research. Finally, accordingto three steps, Resources Integration, cut in market, and to develop business abroad,our country's software enterprises could carry out their activities, achieveindependence and stable export business in last.