China's rapidly developing software market is yet to display its fullpotential and 2005 is a year worth watching in terms of the development insecurity software, management software, middleware, collaboration software, andsoftware outsourcing.
Private and foreign software players dominate the market while many Chinesecompanies are attempting to qualify for international standards with an eye onthe international markets. Currently, Japan is the biggest market for Chinesesoftware exports, followed by the US. China’s software exports are likely tocontinue their swift growth and China will play a larger role globally insoftware development.
Some U.S. and European firms are already seeing outsourcing as a greateropportunity in China. There is every reason to believe that the growth ofChina’s outsourcing market will continue thanks to continued governmentsupport, investment from foreign companies, and strong demand from Japan.Moreover, the entry of more western and now Indian companies should serve toaccelerate the industry’s growth. China's software outsourcing market willgrow 52 per cent in 2005 and perform better in its competition with India, theworld's outsourcing powerhouse.
The information security sector is also growing rapidly as security threatsescalate and dependency on IT systems grows for both multinational and domesticenterprises. In 2003, the information security market was worth USD 200 million,and by 2007, it is expected to grow to USD 670 million, according to IDC. Thecorporate market makes up the majority of the Chinese security market.
REPORT HIGHLIGHTS:
- Competitive analysis of each software market segment and software revenuebreakdown by module, industry, geographic location, and customer size
- Highlighting China’s comparative strength in IT product manufacturing andweakness in software
- Major markets for Chinese software exports
- Government support for software industry providing IT investments,construction of software parks, and quick approvals to secure internationalinvestment
- Market size of enterprise management software, including ERP, SCM, EAM, CRMand financial software
- Drivers of China’s security market and network security product revenues andgrowth rate
- Emerging vertical markets in China’s security services
- Network security revenues from the niche markets—telecom and finance
- Monitoring and regulatory barriers for domestic and foreign players
- Obstacles faced by domestic software outsourcing market
- Number of reasons why foreign firms are participating in the Chinese softwareoutsourcing market
REPORT FEATURES:
The report, titled “China—Shape of the Software Industry and InformationSecurity Services (2005)”, for IT vendors and investors will offer insightinto the key development trends impacting the software industry and informationsecurity services. This report by RNCOS is a benchmark study of the Chinesesoftware market, outsourcing, and security services, providing pertinentinformation about the top 10 vendors in each sector. This report reviewsstrategies, market positioning, and future direction of several providers in thesoftware market, including: Cisco, Neusoft, UF soft, SAP, Symantec, Netscreen,Trend, Kingsoft, and Jiangming etc. Chapter 2 will cover the Chinese softwaremarket, which includes detailed report about China’s software market size,structure, revenue breakdown, software export, and initiatives taken by thegovernment in software industry. Subsequently, Chapter 3 provides an insight tothe lack of focus on outsourcing, domination of Japanese, Indian, U.S., andEuropean firms. The chapter 4 discusses the barriers to the foreign entrants,government participation in vertical markets, expanding markets of antivirussoftware and firewalls, and share of vendors in domestic market. Chapter 5 dealswith recent issues and ongoing events in Chinese software market, outsourcing,and security services. The graphical and tabulated data of this report is acomplete illustration of how government, domestic, and foreign vendors canapproach these evolving markets.
