2.3 Software Industry Foundation and Market

2.3.1 Foundation of the Software Industry

Jiangsu has a well-founded and fast developing software industry, capable of undertaking the international software and information outsourcing contracts. To develop the software and information outsourcing is the best advantage of and realistic option for Jiangsu to develop its service outsourcing.

In 2007, Jiangsu software income reached 83.356 billion RMB, 14.34% of the whole nation, ranking as top 3 of China. Its software industry remained the fast development trend. From 2001 to 2007, the annual growth rate exceeds 50%. Meanwhile, the software enterprises have a noticeably trend of aggregation. The southern area of Jiangsu province is the important development area of the Jiangsu software industry. Nanjing, Suzhou and Wuxi are three representative cities. The sum of the labor force, sales income, industrial value-added and benefits of three cities takes 92% of that of the whole Jiangsu province. With further constructions, their industrial aggregation effects and base advantages will stand out more noticeably.

The software enterprises, as an important outsourced part, develop very quickly. With enterprises coming forth quickly, their economic sizes amplify. Some strong and characteristic enterprises have already stood out. Of 2007 China Top 100 Most Beneficial Software Businesses, there were 9 Jiangsu-based enterprises short-listed. Some software enterprises had been listed in foreign exchange markets.