Based On The Value Chain Of China's Offshore Software Outsourcing Industry

Software industry is one of the highest degrees of globalization industries. With the development of the software industry, it has lager scale and becomes more professional and international. More and more enterprises choose specialized software outsourcing company with more inexpensive human resources cost in the global scope. They outsource the non-core IT function to enhance company's core competence. Now global offshore software outsourcing has become a huge market and is taking best opportunity to China software industry. When searching contractors, most international enterprises prefer the companies in developing countries, which China is one. China's offshore software outsourcing industry has developed a lot in resent years, and the market has increased year after year. However the China software companies got the least profit of the value chain. If the companies want to gain more profit, they must create more customer value. Therefore how to create more customer value, seek the continuable development becomes popular issue and has realistic significance.Scholars in China haven't taken attention to software outsourcing industry, and the researching method hasn't matured. On the basic of former research, this paper takes the value chain theory, considering the operation flow and status of offshore software outsourcing, to conceive the offshore software outsourcing industry value chain. Through the analysis of value chain, we find that China offshore software outsourcing industry is at the bottom of the chain and create least value with gaining least profits. Then, the author conceives China offshore software outsourcing company's value chain and analyses the activities in the value chain. The paper finds product,human resources, technology exploitation and marketing have most affinities with customer value creating and analyses the problems in these activities afterward. At last, the paper takes forward industry improvement strategies, re-conceiving industry value chain strategy and target market specialization strategy.This paper has the framework of putting forward questionsâ†'analyzing questionsâ†'resolving questions. At the part of analyzing questions, the author attempts to use the ubiquitous problems in the key activities of company value chain to analyze the problems in the whole industry. This paper strives to discover the root of the problems and advance industry development strategies, hoping provide helpful reference and suggestion for the development of China offshore software outsourcing industry.