The scale of China software industry in 2005 was similar to that of Indian software industry in the initial year of 1995. Meanwhile, corporate acquisitions and venture capital among Chinese software enterprises have been prevalent in China, which shows the transferring of global software industry into China to some extent.

Market Scale and Forecast of China Software Outsourcing Industry, 2001-2010

There are a great number of experienced programmers and will be numerous newcomers in China software industry. The development of software outsourcing industry is inherently advantageous since the cost of human resources is relatively low in China. In reality, the cost is the main driving force for the international transfer of global software industry. Comparatively, the current earnings of China software outsourcing industry only equals to one twentieth of Indian counterpart, which in another sense indicates the great potentials of China software outsourcing industry. After the fierce competition in domestic software markets, Chinese software companies have accumulated rich experience in technology, management as well as international practices. The ability to survive in the global market competition has been greatly enhanced.

According to ResearchInChina, China software outsourcing industry will be developed with a growth rate of over 30% in the next three to five years. Currently, Japanese market is still China's main outsourcing market, accounting for 59.3% of market shares in the year of 2005. Noticeably, there is a strong growth for European and American counterparts.

Yet, there exist many risks in China software outsourcing industry, like RMB appreciation and the increasing cost of human resources, etc. All these risks need to be worked out by technical improvement, managerial advancement and scale effect and so on.

2 Characteristics of Software Outsourcing Industry
2.1 Business Patterns of Software Outsourcing
2.2 Business Contents of Software Outsourcing
2.3 Clients & Technologies Being Decisive on Value and Growth
2.4 Industrial Profit Level
2.5 Industrial Efficiency
2.6 Industrial Levels of ROA and ROE
2.7 Industrial Profit Level-ROIC Level

3 China Software Outsourcing Market
3.1 Market Scale
3.2 Acquisitions and Venture Capital
3.3 Approximately the Same Profits of Listed Software Companies

4 Prospect of China Software Outsourcing Market
4.1 Being in a Stage of Fast Growth
4.2 Prospect of European, American and Japanese Software Outsourcing
4.3 Risks-RMB Appreciation and Rising of Human Cost

5 Analysis on Major Listed Companies in China
5.1 Neusoft Group
5.2 Insigma Technology
5.3 SinoCom Software Group Limited
5.4 Hangzhou Handsome Electronics Co., Ltd.