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Firm Pushes Outsourcing as Major Money Spinner

The biggest Chinese software exporter Neusoft Group Co Ltd will continue to develop its offshore software outsourcing business, which will account for 30 percent of the company's total revenues in five to 10 years, up from the current 10 percent.

The Shenyang-based software and medical solutions provider said yesterday in Beijing that it plans to win contracts worth about 4 billion yuan (US$480 million) this year and overseas revenues will contribute to 12 percent of its total.

Last year, the company received 70 percent of its revenues from software and services provided to domestic customers, 20 percent from digital medical solutions and 10 percent from offshore outsourcing.

"It was a year of harvest for us in offshore outsourcing in 2004, but it was just the beginning," said company Chairman and CEO Liu Jiren.

The company exported software solutions worth US$33 million and was the largest vendor in the country, according to domestic market research house CCID Consulting Co Ltd.

Neusoft, which started to develop voice software for the Japanese market in 1991 and built its software park for overseas development in 1998, got about 90 percent of its software export revenues from Japanese clients.

Liu said his company has joined up with a number of US multinationals to provide them with services, adding that the US and European markets will become two major targets in the coming years.

Neusoft will mainly target high-end solutions like developing software for mobile phones, medical equipment and automobile electronics.

For its medical business, which formed a joint venture with Dutch giant Philips last year, overseas markets will also become a high priority.

Zheng Quanlu, corporate vice-president and president of Neusoft Digital Medical Systems Co Ltd, said the revenues of his unit are set to reach 1.14 billion yuan (US$138 million).

Its overseas revenues will almost triple this year, according to the company.

The firm has also launched a new brand logo - "Beyond Technology" - to enhance its brand awareness overseas.

(China Daily March 24, 2005)

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