China Trade Information

Shanghai’s information technology service and outsourcing industry will continue to grow 50 percent annually in the next three years despite the global financial crisis, industry officials said during a local IT forum which ended yesterday.

The tough economic environment will force major companies to outsource more non-core business which will create opportunities for the outsourcing industry, said Huang Jun, vice general manager of Shanghai Pudong Software Park Co.

In 2010, the software park, the city’s biggest industrial park, is expected to expand 50 percent annually and generate US$600 million in service and outsourcing revenue. Its total revenue will jump to 25 billion yuan (US$3.67 billion) in 2010, from 14 billion yuan last year.

“Every coin has two sides and the US credit crisis brings us challenges and opportunities,” Huang said at the Third National Software Outsourcing Base (Shanghai) Trade Fair forum.

A global economic recession would impact the industry badly, Huang said, adding that if it was just a financial crisis, it would boost revenue as more outsourcing orders could be expected, for example, from banks.

Xue Jiangbo, general manager of DragonSoft Group, shared Huang’s view.

“The credit crisis will push the financial giants to seek outsourcing partners,” Xue said. ”Chinese firms provide quality services and more competitive prices compared with rivals in the West or India.”

In 2007, Shanghai’s software exports jumped 20.2 percent on year to US$1.19 billion.

Major firms like SAP, Tata and Infosys have set up in the software park.

Tags: China Financial, IT, Software

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