Microsoft Distributes USD 400 Million of Outsourcing Orders Each Year and Integrates the Software Outsourcing Ecosystem
21st Century Business Herald, Nov 2, 2007
微软每年发4亿美元外包订单 整合软件外包生态链

http://finance.jrj.com.cn/news/2007-11-01/000002862970.html

21st Century Business Herald published a top story on the 2007 Microsoft China R&D Group (CRD) Software Outsourcing Summit, held on Oct. 27. As one of the most important China software outsourcing events this year, the summit presented a panoramic overview of Microsoft’s global technology and service outsourcing situation and successful experiences. Ya-Qin Zhang, corporate vice president of Microsoft and chairman of CRD, Samuel Shen, senior director of Strategic Partnership Group, and 17 well known software outsourcing manufacturers, including Digital China, Neusoft, and Inspur convened at the Commune by the Great Wall.

At the summit, Microsoft announced its two strategies to support its partners in software outsourcing: at business level, in three years time, Microsoft plans to distribute more than USD 400 million worth of outsourcing orders to its partners annually; at organization level, Microsoft will strive to integrate China’s software system to cooperate in receiving orders and development, and help merge companies when necessary, in order to establish a software outsourcing ecosystem in China that is completely distinctive from India’s.

Ya-Qin expressed his desire to have Microsoft and its partners form closer cooperation by working together as one entity. Faced with competition in outsourcing from countries such as India, whose dominance somewhat limits the scope of China’s outsourcing industry, Microsoft hopes to become the driving force behind the future integration of the software outsourcing enterprises in China. By forming an alliance with partners, receiving orders together and splitting the revenue, China will be able to ease its comparative outsourcing size disadvantage. In order to boost China’s business, Microsoft has already invested in quite a few of the companies present at the summit. Microsoft has also promised to cultivate 10,000 software developers within the next three years. Despite certain setbacks associated with China’s software outsourcing still being a recently emerging industry, Microsoft and its partners will work hard to advance the industry together.

Microsoft Spokesperson
Ya-Qin Zhang, corporate vice president of Microsoft and chairman of CRD: “Present at the conference today are many of China’s best software outsourcing enterprises. I hope that many of the enterprises here today will walk out of here tomorrow having formed closer cooperation and partnerships.”

Third Party Endorsement
Bin Wang, CEO of Beyondsoft Group: “Three to five benchmark software outsourcing enterprises created through capital merging in the next three years, plus Microsoft’s software outsourcing alliance, might be able to help China’s enterprises solve the problem of being small scaled.”

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