Dalian Software Park - AbsoluteAstronomy.com

Dalian Software Park is an industrial zone, created in 1998 in the western suburbs of Dalian City

Dalian

Dalian is a major city and seaport in the south of Liaoning province, Northeast China. It faces Shandong to the south, the Yellow Sea to the east and the Bohai Sea to the west and south. Holding sub-provincial administrative status, Dalian is the southernmost city of Northeast China and China's...

, Liaoning

Liaoning

' is a province of the People's Republic of China, located in the northeast of the country. Its one-character abbreviation is "辽" , a name taken from the Liao River that flows through the province. "Níng" means "peace"...

Province, China

China

Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, where many of the world's large and medium-sized IT-related companies have set up shop to do software development and information services. While American and European companies typically have gone to Bangalore

Bangalore

Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...

and other cities in India

India

India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

because of the English language capability, the Japanese companies have gone to Dalian and other cities in China due to the Japanese language capability.

Dalian Software Park Co., Ltd（DLSP）was invested and established by Yida Group, is a professional service provider in business park development, management and operation. By the end of 2009, there're over 500 enterprises in the Dalian Software Park, 41% of which are foreign-funded. There are 37 Fortune 500 companies including IBM, HP, Accenture, Panasonic, Sony, Hitachi, NTT, Oracle, AVAYA, NEC, Fidelity, BT etc. In 2009, Dalian Software Park realized an annual sales income of RMB 20.2 billion, with an export value of USD 0.86 billion.

Dalian is one of China's 11 "National Software Industry Bases" and one of five "National Software Export Bases." Currently, more than 300 companies, including 32 Global 500 corporations, have offices in the park.

Nearest airport, Dalian Zhoushuizi International Airport, is 10-20 km away from Dalian Software Park. Its nearest national highway is G202.

Flow of overseas IT outsourcing

Beginning in the 1980s, many IT

Information technology

Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

companies in the developed world began to take interest in offshore labour markets. IT related work in the developed countries had been suffering from lack of IT workers and increased cost. The worldwide trend is now moving from domestic outsourcing to overseas outsourcing

Outsourcing

Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

into countries that have a comparative advantage in labour intensive business activities. The IT work is not only software development

Software development

Software development is the development of a software product...

which require engineering

Engineering

Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...

skills (ITO), but also other business work which requires soft skills rather than engineering skills. (BPO

Business process outsourcing

Business process outsourcing is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments...

), such as call center and other information services is a major aspect of DLSP's tenant's offshore business.

Launch of Dalian's software industry

Having been the major industrial base of Manchukuo during Japanese colonization, Dalian has a history of foreign investment. Since the early 1980s, Dalian has been a major recipient of Japanese and Korean foreign investment. Software development

Software development

Software development is the development of a software product...

in Dalian began in the early 1980s. To attract economic activity, the municipal government established the Dalian Development Zone in the northern suburbs and the Dalian High-Tech Zone in the western suburbs for the high-tech industries. During the first half of the 1990s, application software outsourcing from overseas, particularly from Japan

Japan

Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, has increased. Dalian Hi-Thik Computer Technology Corp.

Dalian Hi-Think Computer

Dalian Hi-Think Computer Technology Corporation , often called DHC, is an outsourcing company headquartered in Dalian, Liaoning Province, China. It was established in 1996 as an outgrowth of Dalian City Computer Center, and now receives outsourcing work from other companies in Japan and other...

(DHC), which had derived from Dalian City Computer Center, and Dalian Hisoft Corp.

HiSoft Technology International

hiSoft, or hiSoft Technology International Limited, is an information technology and business process outsourcing company. On June 30, 2010, hiSoft became the 144th Chinese company to be listed on the NASDAQ public exchange ....

were established in High-Tech Zone. They were involved in application software development, outsourced from NTT Data

NTT Data

is a system integration and IT consulting company of Nippon Telegraph and Telephone Group.Nippon Telegraph and Telephone Public Corporation, a predecessor of NTT, started Data Communications business in 1967...

, NEC

NEC

, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....

, Hitachi

Hitachi, Ltd.

is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...

Software Engineering, etc.

Since the 1990s Dalian City has emphasized the development of the IT industry, especially in Dalian Hi-Tech Zone and Dalian Software Park in the western suburbs near Dalian University of Technology

Dalian University of Technology

Dalian University of Technology , colloquially known in Chinese as Dagong , is located in Dalian, Liaoning, People's Republic of China and directly administered by the state Ministry of Education.-Introduction:...

. There, there are not only Chinese IT companies, such as DHC, hiSoft

HiSoft Technology International

and Neusoft Group

Neusoft Group

Neusoft Corporation or Neusoft Group Ltd. is the largest software development and IT Services company in China, founded in 1991. As of January 2009, Neusoft employed over 15,000 employees...

, but also American, European, Indian and Japanese IT companies, such as Accenture

Accenture

Accenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across...

, Dell

Dell

Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...

, Genpact

Genpact

Genpact Limited is a global business process and technology management company. It was formerly a GE owned company called GE Capital International Services or GECIS. It operates from India, China, Guatemala, Hungary, México, Morocco, the Philippines, Poland, the Netherlands, Romania, Spain, South...

, HP

Hewlett-Packard

Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...

, IBM

IBM

International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

, Liferay, SAP AG

SAP AG

SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...

, Oracle Corporation

Oracle Corporation

Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems...

, Siemens

Siemens

Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...

, Alpine

Alpine Electronics

is traditionally known as an aftermarket car audio and navigation systems manufacturer, famed for their high quality, premium in-car audio units commonly known as headunits. It is a subsidiary of Alps Electric Co. and its registered head office is in Tokyo, Japan. However its main offices, or the...

, CSK Holding, Panasonic, NEC

NEC

, Sony

Sony

, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....

, Cisco

Cisco

Cisco may refer to:Companies:*Cisco Systems, a computer networking company* Certis CISCO, corporatised entity of the former Commercial and Industrial Security Corporation in Singapore...

, Netapp, British Telecom, Aspect

Aspect

Aspect may be:*Aspect , a feature that is linked to many parts of a program, but which is not necessarily the primary function of the program...

, and Fidelity

Fidelity

"Fidelity" is the quality of being faithful or loyal. Its original meaning regarded duty to a lord or a king, in a broader sense than the related concept of fealty. Both derive from the Latin word fidēlis, meaning "faithful or loyal"....

. Currently, the "Lushun South Road

Lushun South Road

Lushun South Road is one of the three highways connecting the Nsval Port in Lushun, Dalian City, Liaoning Province, China, with downtoan Dalian. It is the last part of China National Highway 202, which runs from Hegang to Lushun via Jiamusi, Tonghua and Dandong, and is about 32 kilometers long...

Software Industry Belt" Plan is proceeding, including Dalian Software Park Phase 2..

Dalian has recently become an important center for information technology

Information technology

offshoring

Offshoring

Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...

and business process outsourcing

Business process outsourcing

, similar to Bangalore

Bangalore

in India; the city was described in "The World Is Flat

The World Is Flat

The World Is Flat: A Brief History of the Twenty-First Century is an international bestselling book by Thomas Friedman that analyzes globalization, primarily in the early 21st century. The title is a metaphor for viewing the world as a level playing field in terms of commerce, where all competitors...

" by Thomas Friedman

Thomas Friedman

Thomas Lauren Friedman is an American journalist, columnist and author. He writes a twice-weekly column for The New York Times. He has written extensively on foreign affairs including global trade, the Middle East, and environmental issues and has won the Pulitzer Prize three times.-Personal...

(2007). In another way, Dalian is the forerunner of China's "Re-Development of the Old Industry Bases in Northeast" National Project, which began in 2002.

Today, Dalian is the most establishes information technology outsourcing (ITO) and business processing outsourcing (BPO) city in the PRC and among the top ITO and BPO destinations in the world.

Dalian High-Tech Zone

Dalian High-Tech Zone was established in the late 1980s in the western suburbs near Dalian University of Technology

Dalian University of Technology

and Dongbei University of Finance and Economics

Dongbei University of Finance and Economics

Dongbei University of Finance & Economics is a state level university in Dalian, Liaoning Province, China.Located in the northeast of metropolitan Dalian and originally established in 1952 as Dongbei Institute of Finance & Economics , it is one of Dalian's oldest modern universities, and it is...

. It is a mixed industry

Industry

Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

zone where pharmaceutical manufacturing

Pharmaceutical manufacturing

Drug manufacturing is the process of industrial-scale synthesis of pharmaceutical drugs by pharmaceutical companies.-See also:*Chemical reactor*Chemical engineering*Pharmaceutical formulation*Medical science liaison...

and other plants have back office operations. Dalian's pioneering IT companies, such as DHC

DHC

DHC may refer to:* Daigaku Honyaku Center, a Japanese manufacturer of cosmetics and health foods* Dance Hall Crashers, a popular Ska punk band* Dance House Children, an early 1990s musical collaboration* de Havilland Canada, a defunct aircraft manufacturer:...

and hiSoft

HiSoft Technology International

are headquartered here.

Birth of Dalian Software Park

Dalian Software Park (DLSP) was established in 1998, in the 3 km² area, in the western suburb

Suburb

The word suburb mostly refers to a residential area, either existing as part of a city or as a separate residential community within commuting distance of a city . Some suburbs have a degree of administrative autonomy, and most have lower population density than inner city neighborhoods...

of Dalian

Dalian

, near Dalian High-Tech Zone. It is surrounded by the hills on the three sides and by the Yellow Sea

Yellow Sea

The Yellow Sea is the name given to the northern part of the East China Sea, which is a marginal sea of the Pacific Ocean. It is located between mainland China and the Korean Peninsula. Its name comes from the sand particles from Gobi Desert sand storms that turn the surface of the water golden...

on the remaining side, and is an academic area where Dalian University of Technology

Dalian University of Technology

and Dongbei University of Finance and Economics

Dongbei University of Finance and Economics

are located.

Management of the Park is done by Dalian Software Park Co., Ltd., a private enterprise 100 percent owned by one of the three largest real estate developers in Dalian (Yida Group), which is rare in China where all other software parks are managed either directly by local governments or indirectly by government agencies. The company provides professional services, from registration and basic property management to human resource services to assist in the operations of the IT companies. See also "Preferential policies" below.

Today, Dalian Software Park is the leading business park management and development company in the PRC. In addition to the park in Dalian, DLSP has developed parks in Wuhan, Suzhou, and Tianjin.

History

Established in 1999, Dalian Software Park is a key part of the development of Dalian, a hub of the international IT industry in China. With an area covering 7.16 square kilometers, Dalian Software Park is one of the ten State-level software industry bases. Its export volume is increasing by 100 percent annually. Over 300 enterprises, including more than 60 foreign companies, have settled their IT business in the park.

As it opened officially, Neusoft Group

Neusoft Group

Neusoft Corporation or Neusoft Group Ltd. is the largest software development and IT Services company in China, founded in 1991. As of January 2009, Neusoft employed over 15,000 employees...

came to this park to establish their development centers, and later established Neusoft Institute of Information

Neusoft Institute of Information

Neusoft Institute of Information is a private university insititution with campuses in Dalian, Guangzhou and Chengdu, China, specializing on information technology.-History:...

. Matsushita Electric Industrial (Panasonic

Panasonic

Panasonic is an international brand name for Japanese electric products manufacturer Panasonic Corporation, which was formerly known as Matsushita Electric Industrial Co., Ltd...

) was the first to enter the park, followed by Alpine

Alpine Electronics

, Sony

Sony

, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....

and others.

American and European companies, such as GE

Gê

Gê are the people who spoke Ge languages of the northern South American Caribbean coast and Brazil. In Brazil the Gê were found in Rio de Janeiro, Minas Gerais, Bahia, Piaui, Mato Grosso, Goias, Tocantins, Maranhão, and as far south as Paraguay....

(Genpact

Genpact

), HP, IBM

IBM

and SAP

SAP AG

, came to establish ITO

Information Technology Outsourcing

Information technology outsourcing or ITO is a company's outsourcing of computer or Internet related work, such as programming, to other companies...

and/or BPO

Business process outsourcing

centers, mainly to do their Japanese subsidiaries' work. Chinasoft (headquartered in Beijing) and Xinhua were among the first Chinese-owned IT companies. Later, such Chinese-owned IT companies as iSoftStone (Beijing), New Touch (Shanghai) and Nantian (Shenzhen) also came. See also "Dalian Software Park Phase 2" below.

Current status

Currently, there are more than 380 companies in Dalian Software Park (a September, 2006 survey by Dalian Software Park):

58% Domestic Chinese companies
42% Overseas companies
- 27% Japanese companies
- 15% Other Overseas companies (American, European, Korean, Taiwan. Korean, etc.)

Workforce

The IT service work

Information technology

done in Dalian Software Park can be categorized as follows (A 2006 survey by Dalian Software Park):

40% Application software development
30% Business process outsourcing
Business process outsourcing
Business process outsourcing is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments...
10% Embedded software development
20% Other, such as Drawing
Drawing
Drawing is a form of visual art that makes use of any number of drawing instruments to mark a two-dimensional medium. Common instruments include graphite pencils, pen and ink, inked brushes, wax color pencils, crayons, charcoal, chalk, pastels, markers, styluses, and various metals .An artist who...

, IC
Ic
IC, ic, or i.c. may stand for:In computing and technology:* .ic.gov, a second-level domain name administered by the US Government for members of the intelligence community* Integrated circuit* Initial condition...

or Printed Circuit Board
Printed circuit board
A printed circuit board, or PCB, is used to mechanically support and electrically connect electronic components using conductive pathways, tracks or signal traces etched from copper sheets laminated onto a non-conductive substrate. It is also referred to as printed wiring board or etched wiring...

(PCB) Design, R&D and Animation
Animation
Animation is the rapid display of a sequence of images of 2-D or 3-D artwork or model positions in order to create an illusion of movement. The effect is an optical illusion of motion due to the phenomenon of persistence of vision, and can be created and demonstrated in several ways...

/Video Games

Application development is done mostly by the engineering

Engineering

school graduates of the universities, while embedded software development requires more technical skills in the areas, such as telecommunications or special hardware

Hardware

Hardware is a general term for equipment such as keys, locks, hinges, latches, handles, wire, chains, plumbing supplies, tools, utensils, cutlery and machine parts. Household hardware is typically sold in hardware stores....

.

Those workers involved in BPO varies from the middle school graduates for data entry, to the foreign language school graduates for simpler BPO work, and the returnees of overseas studies for inbound or outbound call center/contact center work. To emphasize the importance of information privacy, Dalian City Software Industry Association has recently implemented, in cooperation with Japan Information Processing Development Corporation (JIPDEC), a city-wide PIPA (Privacy Information Protection Assessment) program.

Dalian Geography

Dalian City

Dalian

is located in the southern tip of China's northeast region. It is surrounded on the three sides by the Yellow

Yellow Sea

and Bohai Sea

Bohai Sea

Bohai Sea , also known as Bohai Gulf, Bohai, or Bo Hai, is the innermost gulf of the Yellow Sea on the coast of Northeastern and North China. It is approximately 78,000 km2 Bohai Sea , also known as Bohai Gulf, Bohai, or Bo Hai, is the innermost gulf of the Yellow Sea on the coast of...

s, and is known for a relatively mild climate in this region with otherwise severe winter.

Dalian has a metropolitan population of about 6 million. It is the most developed city in the northeast region

Northeast China

Northeast China, historically known in English as Manchuria, is a geographical region of China, consisting of the three provinces of Liaoning, Jilin and Heilongjiang. The region is sometimes called the Three Northeast Provinces...

IT Capability and Linguistic Ability

Most of the IT workers come from the engineering schools of the universities in Dalian and other cities in Northeast China

Northeast China

. In Dalian, there are Dalian University of Technology

Dalian University of Technology

, Dalian Jiaotong University

Dalian Jiaotong University

Dalian Jiaotong University is a university in Dalian, Liaoning, China under the provincial government. It has its larger campus near downtown Dalian and smaller campus in the High-Tech zone in Lüshun. Until 2004, it was known as Dalian Railway Institute ....

, Dalian Maritime University

Dalian Maritime University

Dalian Maritime University is a university located in Dalian, Liaoning, People's Republic of China. It is a key maritime institution under the Ministry of Transport of the People's Republic of China.- History :...

, and Neusoft Institute of Information which is within the Park. In other cities, there are Northeast University

Northeast Dianli University

Northeast Dianli University is a university in Jilin, China. It was formed in 1949 in Changchun and was moved to Jilin in 1955. It focuses on engineering and has 14,235 full time students.- History :...

in Shenyang, Jilin University

Jilin University

Jilin University is a leading national university under the direct jurisdiction of China's Ministry of Education.-History:Founded in 1946 as the Northeast College of Administration in Harbin, Heilongjiang, Jilin University merged with many Universities and colleges and changed its name many times...

in Changchun, and Harbin Industrial University in Harbin.

Workers with English ability come from the various universities where English is predominantly their first foreign language, but they lack the experience of the India

India

n university graduates with working knowledge of English. There are also the English-speaking returnees of study abroad, typically from U.S., Canada, Australia, New Zealand and Great Britain. French speaking workers are from Dalian University of Foreign Languages (DLUFL, 100 graduates each year), Liaoning Normal University (LNNU, 30 graduates each year) or the returnees of study abroad, typically in France and Quebec, Canada. L'Alliance française, France's worldwide network of French language education, is located at DLUFL.

Dalian is particularly unique in the fact that there are many workers with Japanese language

Japanese language

is a language spoken by over 130 million people in Japan and in Japanese emigrant communities. It is a member of the Japonic language family, which has a number of proposed relationships with other languages, none of which has gained wide acceptance among historical linguists .Japanese is an...

ability for the following historical reasons:

The southern half of the present-day Dalian City was a Japanese occupied territory, 1905–1945
Dalian University of Foreign Language was established in 1963 as the center of Japanese studies in China.
Since the late 1980s, many Japanese companies have established manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...

subsidiaries and have been employing Japanese speaking Chinese.

Another factor contributing to the Japanese language capability in Dalian is the presence of about two million ethnic Koreans, most of whom live in the Northeast. Culturally and linguistically, China's ethnic Koreans are nearly identical to the people in South Korea. Subsequently, they are capable of learning and speaking Japanese with ease.

Preferential Policies

The Dalian municipal government offers generous tax exemptions and subsidies such as corporate income tax exemption during the first two years of business establishment and 50 percent tax reduction in the following three years. After this five year period, the Dalian municipal government will offer a reduced tax rate of 15% rather than the usual 25% for high-tech companies.

The preferential policy of Dalian City can be summarized in the following points:

The university graduates who have sought high-tech jobs are given the Dalian City residency rights
Since 2004, the software development companies in Dalian Software Park or Dalian High-Tech Park are allowed to pay reduced amount of contribution to the retirement
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...

funds (allowance)
The employees of such companies in such locations are given income tax reduction

Dalian Software Park Phase 2

The construction of Dalian Software Park Phase 2 was begun in 2003 as part of the City Government's "Dalian Software Industry Belt Along Lushun South Road

Lushun South Road

" Project, in a 12 km² area, immediately west of Dalian High-Tech Zone.

A joint venture betrween Ascendas Pte. Ltd. of Singapore and DLSP completed a large office building for occupancy in September, 2007 (Dalian Ascendas IT Park)
Neusoft Group is completing its second Neusoft Park office complex in 2008
A joint venture between DLSP and Shui On Group of Hong Kong will open Dalian Tiandi Software Park and related commercial area in 2009. In September 2007, it was announced at the ceremonies commemorating the start of the construction that Dalian-based Yida Group and Hong Kong-based Shui On Group are to invest a total of 15 billion yuan (US$2 billion) and that the annual revenues of 10 billion yuan (US$1.33 billion) will be generated at the park after the completion of the second phase.

Service outsourcing base along Lüshun North Road

It was announced in June 2007, that a Dalian International Service Outsourcing Base will be created at Dadonggou, on Lüshun North Road, about ten kilometers west of Dalian International Airport.

Expanding to other cities in China

Based on its experience of success so far, Dalian Software Park has decided to build other software parks, in cooperation with the local hi-tech committees:

Wuhan
Wuhan
Wuhan is the capital of Hubei province, People's Republic of China, and is the most populous city in Central China. It lies at the east of the Jianghan Plain, and the intersection of the middle reaches of the Yangtze and Han rivers...

, Hubei
Hubei
' Hupeh) is a province in Central China. The name of the province means "north of the lake", referring to its position north of Lake Dongting...

: Wuhan "Optical Valley" Software Park is ready for occupancy since April 2007. Wuhan is in the center of China's population distribution of 13 million.
Suzhou
Suzhou
Suzhou , previously transliterated as Su-chou, Suchow, and Soochow, is a major city located in the southeast of Jiangsu Province in Eastern China, located adjacent to Shanghai Municipality. The city is situated on the lower reaches of the Yangtze River and on the shores of Taihu Lake and is a part...

, Jiangsu
Jiangsu
' is a province of the People's Republic of China, located along the east coast of the country. The name comes from jiang, short for the city of Jiangning , and su, for the city of Suzhou. The abbreviation for this province is "苏" , the second character of its name...

: Suzhou Software Technology Park in Suzhou Hi-Tech Park SND, located in the western suburbs of Suzhou City, on Taihu Lake, nearer to Wuxi International Airport, will be ready for occupancy from December 2007.
Tianjin
Tianjin
' is a metropolis in northern China and one of the five national central cities of the People's Republic of China. It is governed as a direct-controlled municipality, one of four such designations, and is, thus, under direct administration of the central government...

: Tianjin Binghai Service Outsourcing Base, to be built on the Bohai Sea
Bohai Sea
Bohai Sea , also known as Bohai Gulf, Bohai, or Bo Hai, is the innermost gulf of the Yellow Sea on the coast of Northeastern and North China. It is approximately 78,000 km2 Bohai Sea , also known as Bohai Gulf, Bohai, or Bo Hai, is the innermost gulf of the Yellow Sea on the coast of...

side of Tianjin Economic & Development Area (TEDA), will be ready for occupancy from December 2008.

DLSP is also aggressively seeking to expand into other regions in China.

In Dalian High-Tech Zone

Managed by Dalian Hgh-Tech Zone Management Committee
American companies: BearingPoint
BearingPoint
BearingPoint is an independent management and technology consulting firm. Following a post-bankruptcy management buyout in August 2009, BearingPoint has been operated by its European management team and is organized as a partnership...

, Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...

, Dell
Dell
Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...

, etc.
Chinese companies: DHC
Dalian Hi-Think Computer
Dalian Hi-Think Computer Technology Corporation , often called DHC, is an outsourcing company headquartered in Dalian, Liaoning Province, China. It was established in 1996 as an outgrowth of Dalian City Computer Center, and now receives outsourcing work from other companies in Japan and other...

, hiSoft
HiSoft Technology International
hiSoft, or hiSoft Technology International Limited, is an information technology and business process outsourcing company. On June 30, 2010, hiSoft became the 144th Chinese company to be listed on the NASDAQ public exchange ....

, etc.
Japanese companies: HAL Film Maker, Jtekt, MI Communication, etc.

In Dalian Software Park

Built and managed by Dalian Software Co., Ltd.
American companies: Accenture
Accenture
Accenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across...

, Fidelity Investments
Fidelity Investments
FMR LLC or Fidelity Investments is an American multinational financial services corporation one of the largest mutual fund and financial services groups in the world. It was founded in 1946 and serves North American investors. Fidelity Ventures is its venture capital arm...

, Genpact
Genpact
Genpact Limited is a global business process and technology management company. It was formerly a GE owned company called GE Capital International Services or GECIS. It operates from India, China, Guatemala, Hungary, México, Morocco, the Philippines, Poland, the Netherlands, Romania, Spain, South...

(a GE
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...

company), HP, IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

, Oracle Corporation
Oracle Corporation
Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems...

, etc.
Chinese companies: China Software & Service (CS&S), Neusoft Group
Neusoft Group
Neusoft Corporation or Neusoft Group Ltd. is the largest software development and IT Services company in China, founded in 1991. As of January 2009, Neusoft employed over 15,000 employees...

, Neusoft Institute of Information, New Touch, etc.
European companies: British Telecom (UK), SAP
SAP AG
SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...

(Germany), Oostsourcing (A joint venture of Akyla 40%, Better Be 40%, Insight 20%, Netherlands)
Japanese companies Alpine
Alpine Electronics
is traditionally known as an aftermarket car audio and navigation systems manufacturer, famed for their high quality, premium in-car audio units commonly known as headunits. It is a subsidiary of Alps Electric Co. and its registered head office is in Tokyo, Japan. However its main offices, or the...

, Fujitsu Device, Hitachi
Hitachi, Ltd.
is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...

, NEC
NEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....

, Panasonic
Panasonic
Panasonic is an international brand name for Japanese electric products manufacturer Panasonic Corporation, which was formerly known as Matsushita Electric Industrial Co., Ltd...

, OMRON
OMRON
is a Japanese electronics company based in Kyoto.Omron was established by Kazuma Tateishi in 1933 and incorporated in 1948. Omron's primary business is the manufacture and sale of automation components, equipment and systems, but it is generally known for medical equipment such as digital...

, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....

, Sumitomo Wiring Systems, Yokogawa Electric
Yokogawa Electric
is a Japanese electrical engineering and software company, with businesses based on its technologies in measurement, control, and information. It has a workforce of over 19,000 in its 80 companies worldwide, operating in 33 countries....

, etc.
Other companies: Satyam (India), Wistron (Taiwan), etc.

In Dalian Ascendas IT Park

Built and managed by Dalian Ascendas Co., Ltd., a DLSP-Ascendas joint venture
Konica Minolta
Konica Minolta
is a Japanese manufacturer of office equipment, medical imaging, graphic imaging, optical devices, and measuring instruments. It is headquartered in the Marunouchi Center Building in Marunouchi, Chiyoda, Tokyo, with a Kansai office in Nishi-ku, Osaka, Osaka Prefecture...

, DHC
DHC
DHC may refer to:* Daigaku Honyaku Center, a Japanese manufacturer of cosmetics and health foods* Dance Hall Crashers, a popular Ska punk band* Dance House Children, an early 1990s musical collaboration* de Havilland Canada, a defunct aircraft manufacturer:...

, Lüshun South Road Software Industry Belt Demonstration Room, etc.

In Dalian Tiandi Software Park

Built and managed by a DLSP-Shui On Group joint venture
To open in 2008

In Other parts of Dalian

There are IT companies and organizations that are located in other areas of the city.
Dalian InfoMedia, With System, Sumisei Computer System, NHN Corporation
NHN Corporation
NHN Corporation is an Internet content service operator headquartered in Seongnam, South Korea and established in 1998. It operates the Naver portal, which is the most popular Internet portal and search engines in South Korea, and Hangame, the country's number one online game portal. It also has...

(Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...

), Dalian City Bureau of Information Industry, Dalian City Software Industry Association, etc.

History of the IT industry in Dalian

1992: Dalian Computer Center (DCC) of the Dalian City
Dalian
Dalian is a major city and seaport in the south of Liaoning province, Northeast China. It faces Shandong to the south, the Yellow Sea to the east and the Bohai Sea to the west and south. Holding sub-provincial administrative status, Dalian is the southernmost city of Northeast China and China's...

Government received an order from NTT Data
NTT Data
is a system integration and IT consulting company of Nippon Telegraph and Telephone Group.Nippon Telegraph and Telephone Public Corporation, a predecessor of NTT, started Data Communications business in 1967...

to do application software development.
1996: DCC split one of its departments to found Dalian Hi-Think Computer Technology Corp.
Dalian Hi-Think Computer
Dalian Hi-Think Computer Technology Corporation , often called DHC, is an outsourcing company headquartered in Dalian, Liaoning Province, China. It was established in 1996 as an outgrowth of Dalian City Computer Center, and now receives outsourcing work from other companies in Japan and other...

(DHC, Nov.) Dalian Hisoft Corp.
HiSoft Technology International
hiSoft, or hiSoft Technology International Limited, is an information technology and business process outsourcing company. On June 30, 2010, hiSoft became the 144th Chinese company to be listed on the NASDAQ public exchange ....

was founded (Nov.).
1998: Groundbreaking of Dalian Software Park (June).
1999: Official opening of Dalian Software Park (July). Neusoft Group
Neusoft Group
Neusoft Corporation or Neusoft Group Ltd. is the largest software development and IT Services company in China, founded in 1991. As of January 2009, Neusoft employed over 15,000 employees...

opened a Dalian development center (July). Singapore's BHR-Frontline opened a Dalian development center, as the first foreign company in this Park.
2000: Northeast University's Neusoft Institute of Information
Neusoft Institute of Information
Neusoft Institute of Information is a private university insititution with campuses in Dalian, Guangzhou and Chengdu, China, specializing on information technology.-History:...

started. (Sept.).
2001: Japan Information Service Industry Association (JISA) and China Information Industry Association had their 5th joint meeting in Dalian (July). Panasonic
Panasonic
Panasonic is an international brand name for Japanese electric products manufacturer Panasonic Corporation, which was formerly known as Matsushita Electric Industrial Co., Ltd...

opened its development center, as the first Japanese company in the Park (Sept.).
2002: DHC
DHC
DHC may refer to:* Daigaku Honyaku Center, a Japanese manufacturer of cosmetics and health foods* Dance Hall Crashers, a popular Ska punk band* Dance House Children, an early 1990s musical collaboration* de Havilland Canada, a defunct aircraft manufacturer:...

became No. 1 in China's Software Export Ranking.
2003: Dalian City announced the "Lüshun South Road Software Industry Belt" plan and the groundbreaking ceremonies of Dalian Software Park Phase 2 were held (June). The First China (Dalian) International Software & Information Service Fair was held (July). IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

, Accenture
Accenture
Accenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across...

, CSK and others entered the Park.
2004: HP
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...

, SAP
SAP AG
SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software...

, OMRON
OMRON
is a Japanese electronics company based in Kyoto.Omron was established by Kazuma Tateishi in 1933 and incorporated in 1948. Omron's primary business is the manufacture and sale of automation components, equipment and systems, but it is generally known for medical equipment such as digital...

and other companies entered the Park.
2005: The First China-Japan Embedded Software Seminar was held and a T-Engine demonstration room was established (June).
2006: Chinese Ministry of Commerce gave Dalian City
Dalian
Dalian is a major city and seaport in the south of Liaoning province, Northeast China. It faces Shandong to the south, the Yellow Sea to the east and the Bohai Sea to the west and south. Holding sub-provincial administrative status, Dalian is the southernmost city of Northeast China and China's...

an "International Business Outsourcing Base" recognition.
2007: Opening of Dalian Ascendas IT Park (Sept.). Groundbreaking of Dalian Tiandi Software Park (Sept.).
2008: The 10th anniversary of Dalian Software Park (June). The world-famous companies, such as Nippon Steel
Nippon Steel
, also referred to as , was formed in 1970. Nippon Steel Corporation is the world's 4th largest steel producer by volume.-Early years:Nippon Steel was created by the merger of two giants, Yawata Iron & Steel and Fuji Iron & Steel...

, Cisco Systems
Cisco Systems
Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Cisco has more than 70,000 employees and annual revenue of US$...

, Sompo Japan, BT Group
BT Group
BT Group plc is a global telecommunications services company headquartered in London, United Kingdom. It is one of the largest telecommunications services companies in the world and has operations in more than 170 countries. Through its BT Global Services division it is a major supplier of...

and Fidelity Investments
Fidelity Investments
FMR LLC or Fidelity Investments is an American multinational financial services corporation one of the largest mutual fund and financial services groups in the world. It was founded in 1946 and serves North American investors. Fidelity Ventures is its venture capital arm...

, entered the Park. The Dalian (Japan) Software Park office was set up in Shinjuku Sumitomo Building, Tokyo.

Other cities in China

There are 30-50 City-level, Province-level and National-level software parks in China. There are eleven National level software parks, in: Beijing

Beijing

Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

, Chengdu

Chengdu

Chengdu , formerly transliterated Chengtu, is the capital of Sichuan province in Southwest China. It holds sub-provincial administrative status...

, Dalian

Dalian

, Guangzhou

Guangzhou

Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

, Hangzhou

Hangzhou

Hangzhou , formerly transliterated as Hangchow, is the capital and largest city of Zhejiang Province in Eastern China. Governed as a sub-provincial city, and as of 2010, its entire administrative division or prefecture had a registered population of 8.7 million people...

, Shanghai

Shanghai

Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

, Xi'an

Xi'an

Xi'an is the capital of the Shaanxi province, and a sub-provincial city in the People's Republic of China. One of the oldest cities in China, with more than 3,100 years of history, the city was known as Chang'an before the Ming Dynasty...

, and others.

A brief look at these cities are:

Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

: Being the commercial center of China, the world's key IT industries have opened marketing and systems engineering centers, in its downtown or in such areas as Zhangjiang Hi-Tech Park
Zhangjiang
Zhangjiang High-Tech is a technology park in Pudong, Shanghai. It is operated by Zhangjiang Hi-Tech Park Development Co., Ltd.As of 2005, there were 110 research and development institutions and 327 companies in the technology park.-History:...

in Pudong.
Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

: China's IT industry was "born" in Zhongguancun
Zhongguancun
Zhongguancun , or Zhong Guan Cun, is a technology hub in Haidian District, Beijing, China.It is geographically situated in the northwestern part of Beijing city, in a band between the northwestern Third Ring Road and the northwestern Fourth Ring Road...

, near Peking University
Peking University
Peking University , colloquially known in Chinese as Beida , is a major research university located in Beijing, China, and a member of the C9 League. It is the first established modern national university of China. It was founded as Imperial University of Peking in 1898 as a replacement of the...

and Tsinghua University
Tsinghua University
Tsinghua University , colloquially known in Chinese as Qinghua, is a university in Beijing, China. The school is one of the nine universities of the C9 League. It was established in 1911 under the name "Tsinghua Xuetang" or "Tsinghua College" and was renamed the "Tsinghua School" one year later...

. The world's many IT companies have set up development centers, particularly research centers, due to availability of excellent universities in Beijing. In the north of Zhongguancun is also Zhongguancun Software Park.
Chengdu
Chengdu
Chengdu , formerly transliterated Chengtu, is the capital of Sichuan province in Southwest China. It holds sub-provincial administrative status...

and Xi'an
Xi'an
Xi'an is the capital of the Shaanxi province, and a sub-provincial city in the People's Republic of China. One of the oldest cities in China, with more than 3,100 years of history, the city was known as Chang'an before the Ming Dynasty...

: These inland cities are where key universities moved during the Sino-Japanese War
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

. China's space exploration bases
Chinese space program
The space program of the People's Republic of China is directed by the China National Space Administration . Its technological roots can be traced back to the late 1950s, when the People's Republic began a rudimentary ballistic missile program in response to perceived American threats...

are nearby, and there are strong electronic industries. Chendu Tianfu (Heavenly City) Software Park has IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

, while Xi'an Software Park has Fujitsu
Fujitsu
is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....

, NEC
NEC
, a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....

and a joint venture of UFIDA Software
UFIDA
UFIDA, is one of the major providers of management software solutions and services in China and other Asian countries. Established in 1988, UFIDA has a customer base of over 500,000 across the region....

(Yongyou) and NTT Data
NTT Data
is a system integration and IT consulting company of Nippon Telegraph and Telephone Group.Nippon Telegraph and Telephone Public Corporation, a predecessor of NTT, started Data Communications business in 1967...

.

External links

Dalian Software Park (DLSP)
Yida Group
Dalian Ascendas IT Park
Fidelity Investment (Dalian)
SoftPark Consultancies & Services (SPCS)
Dalian Hi-Think Computer Technology Corp. (DHC)
Dalian Hisoft Corp.
Neusoft Group Ltd.
Dalian High-Tech Zone
Dalian City Bureau of Information Industry (DLBII)
Dalian City Software Industry Association (DLSIA)
China (Dalian) International Software & Information Service Fair(CISIS)
Dalian University of Foreign Languages
Liaoning Normal University
Dalian University of Technology
Dalian Maritime University
Dalian Jiaotong University (formerly, Dalain Railway Institute)
Neusoft Institute of Information, Northeast University
Dalian Polytechnic University (formerly, Dalian Institute of Light Industry)
Chengdu "Tianfu" Software Park
Wuhan "Optical Valley" Software Park
Suzhou Hi-Tech Park SND
Tianjin Economic & Development Area
Xi'an Software Park
Zhongguancun Software Park
Shanghai Zhangjiang Hi-Tech Park

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.

Flow of overseas IT outsourcing

Launch of Dalian's software industry

Dalian High-Tech Zone

Birth of Dalian Software Park

History

Current status

Workforce

Dalian Geography

IT Capability and Linguistic Ability

Preferential Policies

Dalian Software Park Phase 2

Service outsourcing base along Lüshun North Road

Expanding to other cities in China

In Dalian High-Tech Zone

In Dalian Software Park

In Dalian Ascendas IT Park

In Dalian Tiandi Software Park

In Other parts of Dalian

History of the IT industry in Dalian

Other cities in China

See also

Further reading

External links