China's Software Sensing Δ 8th of September 2014 Ω 11:37 AM

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~ Software Industry Overview in China

»Software Industry Overview in China

INDUSTRY OVERVIEW

ξ China’s software industry remains a key focus for the nation’s central government
ξ government gives incentives for both domestic growth and foreign investment
ξ the market remains diverse and highly fragmented
ξ there are over 16,000 local-certified software companies
ξ approximately 40,000 registered software products
ξ more than one million software-industry professionals
ξ the industry is expected to experience more consolidation
ξ China’s software industry lacks core technologies, high-end software development talent, and consistent high quality software products
ξ foreign brands enjoy a large market share in the high-end segment of the software market
ξ local software products comprise less than 30 percent of the market

Market Demand

ξ further investment in IT infrastructure in such industries as finance, telecommunication, banking, education, medical, manufacturing, and the public sector
ξ a new development within China is for companies to seek improved efficiencies by using software to lower costs and improve productivity
ξ US firms should seek opportunities in the Second and Third Tier Cities where economic growth and demand for improved IT solutions remains high

Best Prospects

ξ high-end software solutions requiring a certain level of customization

Application software and specialty software

ξ solutions pertaining to ERP, CRM, service-oriented architecture (SOA), middleware
ξ open-source software

High-end enterprise management systems software

ξ solutions that address database management systems
ξ systems management software products
ξ networking security software products

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