China as a Software Outsourcing Outlet: Status, Enabling Factors, International Impact, and Growth Determinants

Abstract

This article analyzes the potential of China as a software outsourcing outlet. It reviews the progress China's software industry made in recent years, discusses hindering factors that once constrained China's potential as a software outsourcing service provider, and identifies various enabling factors that contributed to China's growing potential as a software outsourcing service provider. It analyzes the potential impact China's growing capabilities as a software outsourcing outlet may have internationally and identifies what China would need to do to become a greater contributor to the world's software outsourcing service industry. Although the study focuses on China, its analysis and suggestions can be valuable to other developing countries as well.