The Government Encourages Outsourcing and Globalization of Software Industry

At 2007 China International Software Expo, Lou Qinjian, Vice Minister of the Information Industry, said, "The next 15 years are very crucial for China. The requirements escalation in all fields, fast development of Internet and prosperity of global outsourcing will all provide excellent opportunities for software industry of China. China will provide supports for enterprises in terms of credit export, promoting cooperation between corporations, establishing platform for public services and talent training. In addition, the government will set up an organization in service of opening new foreign markets, improving the outsourcing capabilities of software company, promoting the united export of software and services and offering domestic enterprises support to enter the markets of Japan, America and Europe. ."

According to Lou Qinjian, in 2006, the market of China’s software reached 480 billion Yuan with software export volume of 6 billion US dollars and 13000 state-certified software companies, 35 of which had more than 1 billion sales volume. The built-up effect of software industry began to emerge.

One of executives from Gartner, world-renowned market research organization commented on China’s software industry, "In recent years, China has established comprehensive categories and information technology of software industrial system. This is very rare in comparison with India and Ireland. India is the world’s largest outsourcing service provider but has a weak infrastructure. It doesn’t possess the market share of e-government, electricity, finance, communication, auto electric, NC machine tool, OA and so on, which are not comparable with China.

But Lou Qinjian thought that software industry has increasingly become the new growth point of the development of information industry and economy of the country. He said, to maintain a quick development of software industry, we should strive to accomplish the following tasks:
First, continue to enforce the legislation of software of industry, and training of software talents and create an environment in favor of their development.
Second, focus on the break-through of core technology such as operating system, and foster companies with intellectual property rights of their own.
Third, accelerate the development of integration of software and hardware.
Fourth, set up a comprehensive and highly scalable software basement.
Fifth, promote the development of software outsourcing industry and encourage MNCs to enlarge the investment scale in China.

Lou Qinjian also pointed, China’s genuine software goes well and the fight against pirated software has seen remarkable effect. The government would reinforce the renovation over pirated software, malicious software and rascal software so as to create a proper environment for the development of software industry.

According to Xu Guanhua, CAS academician and the former Minister of Science and Technology, judging from the domestic situation, the promulgation of "Long-term National Science and Technology Development Planning Framework (2006-2020)" (hereinafter referred to as the "Program") and 60 supporting policies, "the 2006-2020 national development strategies" have provided a powerful impetus for the innovation and industrialization of software technology. The Program states clearly the growth direction of the following 15 years’ software technology innovation from all aspects such as key projects, key areas, frontier technology, and basic research accordingly, which the government would gradually implement while making policy, and arrangements, and allocation of resources.