The Chinese government is expected to allocate 800 million yuan to support training services for outsourcing talents, international certification subsides for enterprises and the establishment of a local public service outsourcing platform.

Lin said that financing channels for Chinese software companies still need to improve. The launch of the Growth Enterprise Market (GEM) has provided more financing channels for many software enterprises. However, for most of the small and medium software enterprises, the high standards required to be considered a hi-tech enterprise in order to seek financing by listing on the stock market, the strict restrictions on bank loans and the risk of investment greatly restrict development.

In 2009, the number of China's software export contracts increased by 59 percent and the number of contract implementations increased by 115 percent from the previous year, according to the 2010 China software exports development report released by the Ministry of Commerce at the China International Software and Information Service fair held on June 24.

Of those contracts, the number of offshore outsourcing contracts increased by 88 percent and the offshore outsourcing export amount increased by 141 percent compared with the same period last year.

The report also said that China's software enterprises need to enhance their international competitiveness. Judging from international industrial competition, China's software enterprises and software exports have relatively weak competitiveness and are obviously lagging behind the United States, India, Ireland and some other countries. They are still mainly in low-end businesses and have a low additional value on the value chain.

As a whole, China has a low level of software industrial technology and most software enterprises and research institutions mainly engage in software engineering projects that lack core technologies. Compared to foreign enterprises, China's current software enterprises are characterized by small scale, low industrial concentration and a shortage of leading enterprises to drive the development of the entire software industry.

Source: People's Daily