US, EU companies are increasingly turning to China for low-priced software development
San Francisco, CA (PRWEB) September 19, 2012
The Software Development industry in China is expected to generate $349.8 billion in 2012, up 19.5% from 2011. The industry has grown strongly at an average annual rate of 29.2% over the past five years due to strong demand from downstream software users and the government, as well as solid pricing levels, says IBISWorld. In particular, software outsourcing firms have improved, with more external clients from the United States and Europe seeking Chinese software service providers that offer low prices. This industry's development has also been supported and encouraged by the Chinese government.
The software market in China is extensive, with software and relevant services widely applied across all sectors of the economy. There are over 26,300 enterprises operating in the Software Development industry in China. However, the number of large enterprises with comprehensive service capacities, such as Huawei Technologies, ZTE Corporation and Digital China, is small and the market share concentration is low. The industry is dominated by small and medium-sized companies that only operate in local markets.
Mainly due to industry assistance from the Chinese government and the improvement of technology, IBISWorld anticipates that the Software Development industry will continue to develop quickly over the next five years. Large firms will receive support from the government to expand outsourcing markets and foreign enterprises will enter the local market by developing and expanding their intellectual property rights.
For more information, visit IBISWorld’s Software Development in China industry report page.
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IBISWorld industry Report Key Topics
The Software Development industry in China provides software products, including applications software, system software and support software, as well as software-related services, such as software design, testing, outsourcing, programming and analysis.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.