MII: Jan-Feb 2008 Software Revenues Reach RMB 92.3 bln
MII, 3/28/08
In January and February 2008, China's domestic software industry netted a total RMB 92.2 bln, up 28.7% period-on-period. Profitability, however, dropped 4.6% period-on-period to RMB 6.9 bln. The main reasons for this were: (1) the drop in growth throughout the entire IT and electronics industry in 2008, which affected the demand for software products; (2) the appreciation of the yuan and its effects on software outsourcing costs, and the decline in value from outsourcing contracts conducted using US dollars; (3) large-scale foreign-invested enterprises increasing efforts to compete for major clients within the domestic market, affecting software outsourcing income for a number of SMEs; (4) under the specific conditions of the software industry, January and February are the months in which software contracts are signed and development begins; income from these contacts is only realized at the end of the year or when development is completed.
Keywords: statistics SME MII software software outsourcing
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