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Software Outsourcing to stay away from the "winter"

Note

Software services outsourcing software industry has always been a profitable hot spots around the park all hope that the introduction of software outsourcing services. RMB exchange rate changes, therefore, direct the software outsourcing industry to meet the exchange rate in the front line for the winter. Especially in Europe and the United States as a major visit to the packet outsourced services in the RMB exchange rate against the dollar break through 7, it is difficult for all small and medium-sized enterprises. This is based on U.S. dollar-denominated revenues, as well as a variety of fees and expenses for the RMB clearing, RMB exchange rate between the dollar and the difference between a serious impact on the value of their profits, coupled with the appreciation of the renminbi depreciation of the dollar, the depreciation of between 1 l, so that outside Package of industry profits almost disappeared.

At the same time, Japan's software outsourcing business is a big business package of key enterprises at home and abroad, the contract market, the Japanese market accounts for about 63% of the overall market, while Japan's IT outsourcing projects in general is not high, the depreciation of the Yen is also Japan's economy in line with the development needs of low-yen exchange rate factor in the relatively strong. Japan's low value-added that can not be a powerful alternative to exports of the software industry will face great difficulties.

There are figures of yuan for every 1% of the total software export profits will be 0.7 percentage points. Since July 2005 to Dec 2007 25, China Foreign Exchange Trade Center, according to the statistics, a total of RMB appreciation rate of over 11%.

In theory, corporate offshore outsourcing contract aimed at making business to save 30% -50%. If the yuan continues to appreciate, this will be the driving force behind the outsourcing is getting smaller and smaller. This is China's outsourcing market is a big blow to the development of immature market, set up road blocks, impeding development.

Small and medium-sized independent software developers can hardly ends meet

Despite the changes in RMB exchange rate to reduce independent software developers of software outsourcing services to the living space, but large-scale ISV outsourcing, but the bad days, and its strong capital advantage can be assured that enable them to tide over the current winter rates. Liu Ren, chairman of Neusoft Group machine, a public occasion, he said: "Despite the current environment, but large-scale software services outsourcing company, is not very serious, it is also a competitor at the same time, so be it their own The more powerful a good time. "

In this regard, the international soft in Europe and the United States is committed to outsourcing, Sun Xiu-fang, vice president of view is common, she said: "The macroeconomic environment of outsourcing services, is bound to affect business at the same time it is also an industrial adjustment. The Matthew Effect major competitors also found that the software outsourcing industry. "

SUN Xiu-fang at the same time also pointed out that the current economic environment, a number of small and medium-sized software services outsourcing company is bound to die, a large outsourcing company will need to be more specific, more detailed, each list should conscientiously do a good job.

In fact, the software outsourcing services to small and medium-sized enterprises are faced with is indeed a better chance of surviving pressure High-tech Zone in Dalian, have 20-30 software outsourcing company has developed its own software, "Union", his spokesman said Appreciation of the RMB, which has eaten up 10% -20% of sales, some companies even 100% of the orders come from overseas, the current contract has been signed.

As the domestic software outsourcing enterprises generally choose only one side of the package, rather than direct contact with customers, and then package in the business value chain, is also a low-end, that is the primary encoding as well as the outsourcing of some of the test outsourcing business. The industrial chain of high-end demand for software research, design, as well as the detailed design, and other Chinese enterprises are rarely touched on. This situation makes China's software outsourcing industry, low value-added industries, industry profits are not high, a large number of outsourcing software outsourcing business profit margins of about 20% -30% of the profit margin less than ordinary small and medium-sized small and medium-sized manufacturers 10% of the business. Run-rate of less than 4% out of the small and medium-sized enterprises must be a single, a single payment, is faced with death.

Zaiyu outsourcing overseas financial turmoil

"911" incident, the seventh anniversary of the week, the top five U.S. investment banks, in addition, Bear Stearns in March this year, bought JP Morgan Chase, Lehman Brothers announced on September 15 filed for bankruptcy protection, as well as Merrill Lynch in September 14 to reach an agreement, Bank of America will be the price of 44,000,000,000 U.S. dollars, which is the day after tomorrow. In six months, five major Wall Street investment banks, in fact, the three, in addition to investment banking in the United States, there are many small and medium-sized commercial banks, insurance companies are also at risk. U.S. financial markets are facing 29 years to 1933 during the Great Depression of the most serious challenges.

We all know that in the field of financial services, IT industry is the largest source of income. About 10% of the software industry -30% of the revenue from the financial sector. This year, IBM, Hewlett-Packard, Cisco and other IT giants have already felt the pressure in the banking sector, a survey shows that about 43% of the business plan in order to reduce IT spending, while the financial sector, 49% of the IT sector plans to reduce Budget.

The negative impact of financial market news not only to attack Europe and the United States market, China's software outsourcing companies, such as Neusoft and soft in such an international software outsourcing services to the domestic giant, was born in the United States of the local software outsourcing company Adversely affected.

Genpact Senior Vice President Cho Sung-Asia, said: "Jan Burt Although the former General Motors subsidiary is a software outsourcing business services sector, from the general's independence, China has in the past 4 years local experience, but to wealth American Jane Porter's experience in the operation of the market also believes that the Asian financial crisis in the United States has been very clear customers cautious and conservative. "

Zhao said: "Even in the first half of the customers have a good contract, many of whom become the rescheduling or delays in the implementation."

In the face of this cooling market environment, software outsourcing services to independent software developers on how to keep out the cold?

This year, the city of Dalian, 20 software outsourcing services to a number of enterprises set up their own "coalition." The software outsourcing business, "Union" is actually a strategy to deal with the risks. United small and medium-sized enterprises, software outsourcing, "the Group" have a more far-reaching significance. After the Union vulnerable to the size of the bid to negotiate a more solid capital, and then after the package greater ability to perform. Union will bring more stability to provide better customer market order.

Economies of scale, the software outsourcing industry is of vital importance. For international business, they must consider outsourcing more R & D capabilities and credibility, not just the price factor. Because of this, the largest outsourcing companies can easily solve all conflicts, more high-end outsourcing services.

In addition, SUN Xiu-fang, the software outsourcing business in the winter, we must pay attention to brand image and integrity of the building, she said: "For customers in Europe and the Americas, when it comes to first think of outsourcing is certainly India Company. This is not only a language barrier Is a problem, but China's software outsourcing services to businesses not value their own brand names. The Chinese people are not market than India, the outsourcing industry, but because of a lack of brand awareness and credibility, the two sides of the building. "

"Winter" is also an opportunity to

Even if the current macro-economic environment than in previous years, but China's economic development is still at double-digit growth. China's software outsourcing services, India's software and service outsourcing business is the biggest difference between China's domestic demand and strong advantages, and possessed a large domestic market.

To this end, SUN Xiu-fang said: soft this year is expected to set up the International 5-8 in the software outsourcing training base, which is not only a training base for outsourced services, staff training, more importantly, these should be the base for future access to the corresponding The package, and can be carried out software outsourcing business center.

At the same time, though her small living room for smaller, but they are also the special services of well-cut opportunities. For example, some experts in the application, or for a particular customer service is very detailed, very unique, especially to do, to do so fine.

In response, Zhao also hold the same view, for example, he said: "At present, the pharmaceutical industry is outsourcing a hot, and the pharmaceutical industry's drug research and development for a long period, if the small and medium-sized enterprises in the outsourcing industry experts To help pharmaceutical companies shorten the cycle of new products to market, it is also a huge source of profits. "

Similar soft domestic sales in the international practice, Jane Burt also began to seize the domestic users of high-quality regional outsourcing center. Zhao said: "Although the public can not Genpact to set up branch offices in the city, but the company has become the ideological and strategic considerations, and in the process of being implemented."

M & A and overseas listing

M & A business is rapidly expanding the size of a way of Genpact over the past few years has been looking for opportunities for mergers and acquisitions of local Chinese companies outsourcing services. In August this year, Beijing iSoftStone completion of the company's computer Haijie Feng Technology Co., Ltd. The acquisition and integration. Haijie peak on Science and Technology Co., Ltd. is a professional enterprise engaged in computer software development, Microsoft. NET is an outstanding technical advantages.

"M & A strategy is to iSoftStone's future development strategy, through the establishment of effective mechanisms and procedures, iSoftStone after a series of mergers and acquisitions has been smooth. Mergers and acquisitions combined with our own development, we have made in all markets, including Foreign domestic market and achieved an average growth rate faster than the market has reached a very good level of profitability. "ISoftStone Chairman and Chief Executive Officer Liu said:" We are in the field of mergers and acquisitions will further strengthen its focus on industry and technology In the field of competitiveness. "It is reported that recently, the company also carried out Japan, mergers and acquisitions.

Outsourcing services for large enterprises, SUN Xiu-fang said: "Companies need to self-growth through acquisitions to expand the scale of outsourcing in China's top 10 companies share the market share of 30%, and India on the contrary, accounting for 70%. As a result, If the Chinese side in the outsourcing trend, the size of the enterprise to do more, more specifically, small. In the field of software outsourcing services, including our software in the international community is still in its infancy in the future there will be more and more mergers Self-growth. "

Overall, despite the current macro-environment than in the past few years, but with the cost of business-to-demand, software outsourcing service provider, through mergers and acquisitions of listed and other means to enhance their strength may be more business Opportunities.

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