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1. FOR IMMEDIATE RELEASE
Increased emphasis on modernization coupled with declining software piracy will boost the Chinese
software market, finds Netscribes
Netscribes (India) Pvt. Ltd. launches Software Market in China 2012 report covering a market with strong
growth potential. The report is part of Netscribes’ Information Technology Industry Series reports.
Mumbai, India – 9 March, 2012 – Netscribes (India) Pvt. Ltd., a knowledge consulting solutions
company, announces the launch of its report, Software Market in China 2012. The market is poised to
demonstrate robust growth of 20% CAGR during 2010-15.
The report begins with the introduction of software industry covering major types of software followed by
the historical evolution of China’s software industry. The market overview section provides global
software market size with growth potential for the period of 2010 and 2015. Domestic software market
overview also delves into the market size and growth potential for the same period along with a split of
sub-sectors and major software hubs in China. The report finds that four cities located in eastern China
contribute more than half of total software output in China.
The international trade section provides detailed information about the software exports and its growth
during 2010-11. It also provides export figures of software outsourcing for the same period. Further the
share of export to output over the decade ending 2009 is also illustrated.
Key factors driving the growth of software market in China include modernization of core sectors, large
internet & mobile phone user base, increased adoption of e-commerce, rise in income, increasing emphasis
on computerization and rising population of computer scientists graduating annually in China.
The report finds that China being the world’s 2nd largest economy after US acts as a key growth driver for
its software market. China has the largest consumer base of internet and mobile phone users in the world
which provides high impetus for the growth in China’s software market. With increased adoption of e-
commerce making financial transactions online, there is a rising need for payment gateways and other
related software platforms driving the software industry in China. Rise in disposable income is an
important driver for promoting the use of expensive genuine software. Largely untapped rural markets
with low-cost services and appropriate business models act as a compelling factor in the growth of Chinese
software market. Wave of computerization and automation both in public and private sectors is driving the
growth of software market in China.Over 10,000 computer scientists graduate every year, depicting strong
growth potential for software market.
The players operating in the market also face challenges that impede the market growth and its
development. Major challenges identified in the report include language barrier, software piracy, lack of
intellectual property rights protection, high costs of entry, government emphasis on the hardware sector,
and software bug.
The report finds that language barrier is one of the biggest challenges faced by the software market in
China. The second most important challenge to address is the loss due to software piracy which is second
highest in China after the US. Lack of Intellectual property rights protection in China leads to widespread
IPR violation. High barriers to entry for both software exports and investment are also major issues
restricting the market’s growth potential. China is the second largest market in terms of computer hardware
sales whereas it is only the eighth largest for software sales in the world.

2. The report also provides the role of government in the country’s software sector one of them being
measures adopted to cut down software piracy. It further mentions the imposition of tariffs and standards
for the benefit of China’s software sector. 12th five year plan (2011-2015) for the Chinese software market
alongwith some major national policies impacting the sector are also covered in the report.
Emerging trends in the software market include declining software piracy, rapid development, and
increasing mergers & acquisitions.
Opportunities section in the report elaborates on the opportunities in applications development, enterprise
software and IT consultancy and outsourcing sector.
The competition section outlays the competitive landscape of the software industry in China briefing about
the domestic and foreign players existing in the market. This section provides a three dimensional analysis
of key players’ revenues, profits and market capitalization. The report also features brief profiles of major
domestic and foreign players in the market and a snapshot of their corporation, financial performance,
business highlights and their product portfolio, providing an insight into the existing competitive scenario.
Some of the key statistics or factors impacting the software market in China covered in the report includes
global software market size, domestic software market size, domestic software sales growth, sub-sector
wise and region wise revenue composition, share of major cities in software industry output, export growth
of the software and software outsourcing services, share of export to output, China’s GDP growth, internet
population, mobile phone population, top five countries in terms of both internet and mobile phone usage,
smart phones market size, market size and growth in e-commerce, urban per capita disposable income, 10
most popular languages used on the internet, commercial value of unlicensed software in China, declining
software piracy rate, declining losses due to piracy, rapid growth of operating revenues in data processing
& operating services, IT consulting & management services, software product, and embedded system
software sectors, revenues of top 100 software co., etc.
The next section enlists the mergers & acquisitions of the major players in software market in China
during 2010-12.
Key takeaways section summarizes the entire market in terms of opportunities, trends and challenges
persisting in the software market in China.
For more details on the content of each report and ordering information please contact:
Jitendra Punjabi
Tel: +91-33-4064-6215
Email: jitendra.punjabi@netscribes.com
About Netscribes (India) Pvt. Ltd.
Netscribes (www.netscribes.com) is a pioneering knowledge consulting and solutions firm with clientele
across the globe. The company’s expertise spans areas of investment & business research, business &
corporate intelligence, publishing services and customized knowledge database creation. At its core lies a
true value proposition that draws upon a vast knowledge base.
For more information please write to info@netscribes.com
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400 012, Maharashtra, India.