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Summit Addresses Software Outsourcing in China

Several US software companies visited the ZSoft Outsourcing Summit in Beijing as the Zhongguancun Software Association established a plan to better assist Euro-American software outsourcing initiatives.

The Zhongguancun Software Association held the Zsoft Outsourcing Summit Beijing, China, today. The summit, sponsored by the National Software Export Center, the joint association of the BUAA Science Park and Zhongguancun Science Park, featured the major theme, 'Software Changing China' and highlighted the need to provide services to assist Euro-American enterprises to outsource their software projects and services to potential partners in China.

More than five American companies brought eight projects to the summit. They had one-on-one business discussions with multiple potential Chinese software development companies and took site tours to selected Chinese software development companies. Zsoft also invited academic leaders and employment directors from about 100 computer colleges to hold discussions with key human resource major- domos of outsourcing enterprises on the training issues at the conference.

Yu Bin, director of the Zhongguancun Software Association, said that the software outsourcing development in China was hurdled by four major obstacles. The first obstacle was intellectual property. Second, many foreign software companies have prejudice views on Chinese companies, with impressions of many foreigners' on China remaining from the 1980s. Third, China lacks senior software talents. Many senior talents simply stayed abroad. The talents cultivated by the domestic universities failed to meet the needs of the work. Finally, the scale of most domestic software outsourcing enterprises is comparatively small.

According to Bin, an industry agreement signed by Zhongguancun Software Association and the software outsourcing enterprises dismisses the doubts of the contractors about intellectual property. The agreement produced an expert committee on outsourcing to the US, and helps software outsourcing enterprises to improve their business capability. In addition, the agreement established 10communication services abroad, hiring high-level American experts as the communication directors for expansion of the international market for Zhongguancun. Bin also said that three outsourcing orders had been introduced from the US, which valued more than $1 million. In the next five to 10 years, the value of Zhongguancun software outsourcing would amount to $20 billion.

Bin said that although there aremore than 5,000 software enterprises in Zhongguancun, the shortfall of talents in the area of outsourcing software to Japan was up to more than 5,000, which is less than that in the area of outsourcing software to the US, with less than a 10% supply rate. Moreover, the shortfall increased at the rate of 50% every year.

Yu Bin said that taking into consideration the shortage of talents in the domestic software industry, the  Zhongguancun Software Association established a service platform for the software outsourcing talents to train for occupations, and carried out ''Order-Oriented Training.'' It had successfully provided 10 software outsourcing enterprises with professional and practical talents. He added that the training in pairs with colleges would foster one million professional software talents for Zhongguancun in the next few years.