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BEIJING,[link widoczny dla zalogowanych], Dec. 14 (Xinhua) -- China will become the world's biggest provider of software outsourcing, according to analysts at the China International Software Outsourcing Summit 2006 held in Shenzhen in south China on Wednesday.
The analysts claimed that in a few years time about five to 10 percent of U.S. and European software outsourcing will be diverted from India to China.
Increased outsourcing contracts will boost mergers and acquisitions within China's software industry,[link widoczny dla zalogowanych], so that enterprises can scale up and win more contracts, according to the analysts.
A recent survey shows that in the mid-1990s,[link widoczny dla zalogowanych], only 15 percent of China's software companies were under contract to foreign companies to provide outsourced software,[link widoczny dla zalogowanych], but in 2005 the figure had climbed to 40 percent.
Outsourcing contracts with U.S. based companies doubled in 2005 over the previous year,[link widoczny dla zalogowanych], while business with EU firms was up 85.7 percent.
The global service outsourcing market is worth between 300 billion and 500 billion dollars. Business insiders have predicted the market will reach one trillion dollars in 2008 with an annual growth of 7.9 percent.