A Study On The Business Models Innovation Of Software Outsourcing In China

Given the domestic and international situation. India is the biggest software outsourcing country. Nowadays, more and more international companies have considered transferring some part of relative service outsourcing business from India to China to reduce risks and cut down costs. These transferring trends have become more quickly than before after the financial crisis broke out.China software industry has been active in pursuing software outsourcing opportunities. With the rapid growth over the past few years, the growth of China software industry is rather concentrated on the subcontract of software outsourcing within the country, and the growth scale for software outsourcing have remained rather sluggish compared to that of India and other competitor outsourcing supplier countries. Meanwhile, compare to such countries strong in software outsourcing as India, the software outsourcing industry in China is still in a primary level, staying on a low level in respect of the Value-Chain. As latecomer, China software industry has very limited presence in the U.S. and European outsourcing markets. Most projects of China's software outsourcing are from Japan due to such aspects as culture, politics, law, technology, management, workflows and so on.This paper applies the Meso-scopic Approach to Business Models to analyze the development of international software outsourcing and evolution of international software outsourcing business models. At the same time, it also relates to the characters of software outsourcing operation environment and explores the present software outsourcing market and existing problem in China. So, we can probe into the form of the business models innovation of software outsourcingAfter detailed analysis, we can find that the low-price competition strategies brought by labor cost is far beyond the customer's needs and do not support the sustainable development of China software outsourcing industry. Grasp the opportunities of domestic demands and expending international subcontract businesses have become very important for the development of China software outsourcing industry. Taking advantage of domestic demands, software outsourcing enterprises should energetically explore potential markets worldwide. The key to the fostering, forming and innovation of the core ability to compete lies in the organic combination of the Chinese domestic demand and overseas market.