The Development And Countermeasures Of Software Outsourcing In China

With the development of IT industry and detailing division of labor in society, the software outsourcing has already become an vital mean of internationalization to Chinese software industry. China has taken software outsourcing, which is getting more and more important in foreign trade, as a point of breaking through in international service trade market. The research in the factors which effect the job acquirement to Chinese software outsourcing plays an important role in government policy making and it also has a great effect on strengthen Chinese’s international serving competitive capabilities. Wuhan, as the new representative, is one of the cities of the domestic software industry. Compare to other mature city such as Beijing, Shanghai and Dalian. Wuhan’s software outsourcing development is facing the problems of great industrial and enterprises scale limitations, lacking of highly qualified professionals, publicity invisible, and etc. This paper first introduces the basic theories of software outsourcing and the status of China software outsourcing industry, then brings out the analysis which focus on software outsourcing serving to Japan. India, who is the largest software outsourcing market in the world, is China’s largest competitor. Therefore, this article focuses on the comparison between China and India software outsourcing business, and analyzes China’s superiority, weaknesses relative to India, then listed the reasons and made a few proposals. At the same time, due to a number of factors that may impact China’s software outsourcing, such as institutional support, domestic and foreign markets as well as personnel costs, the paper put forward policy recommendations for software outsourcing which must be innovated. Based on this, Wuhan, for example, starting from the macro environment and industry competitiveness, comparing both in terms of the typical city of Wuhan’s development status and the development of domestic software outsourcing, this paper analyze in-depth the status of the software outsourcing industry, opportunities, threats, strengths and weaknesses in Wuhan. With the result of analysis of the development status of the software outsourcing industry in Wuhan, several strategies are brought out which the laddering strategy, the industry chain strategy, human resources strategy, and brand strategy are on the list. In the laddering strategy which discussed how to pinpoint their own position in the domestic software outsourcing development in Wuhan, and gradually occupied the domestic market and ultimately to the international development strategy. The industry chain strategy gives definition of the industrial chain, and also explained the necessity of the construction industry chain for Wuhan’s further development in software outsourcing. The human resources strategy is based on the superiority that there are many colleges and universities and big amount of professionals in Wuhan itself. This paper discussed how Wuhan should use the human sources to develop software outsourcing, how to retain and attract talents. The brand strategy is in the second half which discusses the how Wuhan establish a brand in order to become a busy software outsourcing city, while in the current period of development, how to establish brand awareness, and in which way to build a brand strategy. This article also discusses the role that government should play in the process of software outsourcing development.