11) Software Outsourcing Changing China - Zsoft Outsourcing Summit Held in Beijing

Zhongguancun Software Association held the Software Outsourcing Changing China-Zsoft Outsourcing Summit' triumphantly in Beijing, China, on December 22, 2005. It was supported by NSEC which stands for National Software Export Center, the united association of Zhongguancun Science Park and the BUAA Science Park. Besides, it was sponsored by the Department of High and New Technology Development and Industrialization of the Ministry of Science and Technology of PRC, UN Industrial Subcontract Center in Beijing and the Administration Committee of the Z-Park.

The 'Software Outsourcing Changing China's' major theme highlighted the necessity to offer help to European and American companies to outsource software projects and IT services to latent Chinese providers.

During the summit, Zsoft offered a platform to assist any enterprise and organization outside China to invest their resources wisely and to help establish their businesses in China with a single contact. Over five American companies brought eight projects to this summit. They had one-on-one business discussions with various potential Chinese offshore software development companies, and had site tours to selected Chinese software development companies. Another main theme for this summit was to participate in visits and have discussions on offshore software outsourcing projects. Also, Zsoft intended to “transform human resources into human capital and transform education achievements into productivity.” Meanwhile, Zsoft could invite approximately 50 domestic software-outsourcing enterprises to the conference to illustrate the emergent need of outsourcing talents, the demand status, and employment requirements in China. Zsoft also invited academic leaders and employment directors out of nearly 100 computer colleges to hold discussions of outsourcing enterprises on the training issues at the summit.

Mr. Yu Bin, the director of Zhongguancun Software Association, claimed that the software outsourcing development in China was a victim to four major obstacles. The first obstacle was intellectual property. Second, many foreign software companies have prejudice ideas on Chinese companies, with impressions of many foreigners' on China remaining from the 1980s. Third, China wants senior software talents. Many senior talents just stayed abroad. The talents cultivated by the domestic universities failed to accommodate the needs of the work. Fourth, the scale of most domestic software outsourcing enterprises is relatively small.

"This industry agreement signed by Zhongguancun Software Association and the software outsourcing enterprises," said Yu Bin, "dispelled the doubts of the contractors about intellectual property. It founded the expert committee of outsourcing to the US, and helped software outsourcing enterprises to enhance their business capability. It also fostered the Zhongguancun's overall brand strategy, and made it more competitive in the international market. It built ten communication services abroad, employing high-level American experts as the communication directors for expansion of the international market for Zhongguancun." He also stated that three outsourcing orders had been introduced from the US, which valued more than one million dollars. In the following five to ten years, the value of Zhongguancun software outsourcing could amount to twenty billion dollars.

Mr. Yu Bin said, "that even though there were more than 5,000 software enterprises in Zhongguancun, the scarcity of talents in the domain of outsourcing software to Japan was up to more than 5,000, which was less than that in the area of outsourcing software to the US, with less than a 10% supply rate. Furthermore, the shortfall increased at the rate of 50% per year. The orders that value twenty billion dollars would be attained in the next few years. However, occupying such a market share means that it needs one million talents in software outsourcing. Otherwise, it will be excessively tough to reach the goal of twenty billion dollars."

Ultimately, college representatives, enterprise leaders and training workshop representatives presented at the summit initiated the Zhongguancun's international software talents supply chain. They organized the visit of Zhongguancun's outstanding software outsourcing enterprises for the colleges, and arranged a dialogue between the Zhongguancun software outsourcing enterprises and the students engaged in the training associated with colleges. In the dialogue, they conjured up their true feelings of working in Zhongguancun software outsourcing enterprise after internationalized training. These actions built a job-seeking bridge for college graduates with access to the emerging industry, Zhongguancun software outsourcing enterprises. It was also an opportunity for the one hundred college presidents to discuss the innovative mode of ''training education'' en masse.

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