Chinese ITO industry to reach $56Bn by 2015; Dalian on the rise

According to an EDS white paper, entitled “Building a World-Class IT Services Outsourcing Industry in China,” the Chinese information technology outsourcing (ITO) industry is expected to generate revenues worth USD $18 billion by 2010 and USD $56 billion by 2015. The industry is also expected to create job opportunities for about 4 million professionals by 2015. The Chinese government has also recently signed a strategic agreement with EDS to foster the country’s ITO industry. In addition, the paper boasts of abundant supply of workforce, excellent infrastructure, and low-cost advantage in the country.

Various Chinese provinces are offering tax rebates and have implemented favorable policies to facilitate the country’s outsourcing industry and allow international companies to expand/open their offshore operations or set up joint ventures in the country.

According to Dai Yulin, the Vice Mayor of Dalian, the software industry’s revenue in the northeast Chinese city of Dalian is likely to increase to about USD $5.25 billion (CNY 40 billion) by 2010. He added that the city is likely to have about 4–6 software outsourcing services companies, having annual revenue worth more than USD $144.45 million (CNY 1.1 billion).