China Information Technology Outsourcing: An Intellectual Property Perspective

Since February of 2009,the State Council approved the 21 cities to become "service outsourcing model city." Chinese local governments have set up a software park as a business incubator, providing incentives, strengthen intellectual property protection, and provide tax incentives,financial support and subsidies,in order to support massive infrastructure build and improve the service of outsourcing industry. According to the Ministry of Commerce statistics show that, with the support of the Chinese government services outsourcing industry, the next five years,Chinese service outsourcing market will remain about 26% compound annual growth,in 2014, it will reach about 43.9 billion U.S. dollars in the market.However, compared to other countries,it is still low proportion, One of the most important reason is that China is the sole intellectual property protection and enforcement issues include the extent of the first group of countries,namely, protection of intellectual property and law enforcement problems are most serious countries.This paper explains the basic concepts of outsourcing,and define the scope of information technology outsourcing,and detail distinguish between the information technology outsourcing (ITO)and business process outsourcing (BPO).Then,on the outsourcing of information technology services related literature was reviewed and sorted into the literature on the motives for outsourcing, the risks and the development of a summary described the current situation.Then discusses the outsourcing of information technology services that exist in two of the most intellectual property issues of concern, ownership of copyright and trade secrets, and discussed the process of information technology services outsourcing risks that may arise is due to China's outsourcing market of non-standard information and economics of intellectual property created.After the above theory, this paper take a real case, through the Bureau hopes the company and Correll,Jeffrey's "hope test system software copyright dispute" case analysis show that the process of information technology outsourcing services to both businesses strengthen awareness of intellectual property protection and regulating the content of contracts related to the importance of intellectual property rights, which are Chinese enterprises in the information technology outsourcing services, a common problem.This then these issues are national,corporate and party giving the contractor the standpoint of business some constructive suggestions to promote the health of China's information technology outsourcing rapid development and hope that through this trigger legal experts, academics as well as actual operations Thinking of those.