This IDC study explores the current status of the China-based offshore software development market as well as vendor ranking in 2013. Because of the pressure of rising costs, more and more companies have recognized that cost advantage is temporary for China local vendors to win contacts; they hope to build core competencies by providing the value-added and efficient services for clients. The year 2013 was a year of rapid development and sharp transformation for the China outsourcing market, as it experienced a dynamic merger of equals, M&A, as well as the establishment of joint ventures.
To strengthen the cooperation between each other, some China-based SPs and third sector enterprises cofounded the China IT Services and Outsourcing Industry Alliance in November 2013. This alliance aims to promote information sharing in order to strengthen their solidarity, raise awareness of issues, as well as improve collective bargaining power under their common challenges from higher cost to exchange rate loss.
"Under a lot of negative impacts such as rising labor cost, exchange rate fluctuation, as well as the effects of outsourcing backflow in 2013, the China-based offshore service providers are actively engaging in some strategic transformation and improvement of on-site delivery capabilities, aiming to enlarge the revenue share of higher value businesses," says Shanshan Li, senior analyst, Services, IDC China.
Browse more Software Market Research Reports