The Chinese software industry has grown significantly, mainly due to rapid growth in such industries as finance, petrochemical, telecom, petroleum and railway. Moreover, the software enterprises have grown much wider and deeper than the previous single software development.

The emergence of China as an attractive investment centre in the software industry lies in the fact that the country enjoys the benefits of low labour and production cost, along with a huge talent poll. Besides, as the development of software turns from innovation-oriented to service-oriented, a large educated population of China makes it an attractive destination to start software development operations.

The country’s government is playing an important role in the growth of software industry. It has made concerted efforts to improve the infrastructure to fully exploit its potential. In addition to this, it is supporting the industry by making considerable investment, building software parks and giving immediate approval to international investment in the industry.

Along with favourable business policy environment by the Chinese government, an important step to reduce the gap between the software industry’s output and demand is to link the country’s business and development with the development in the software industry. It will help in upgrading and promoting the software industry in the country.

China is famous for its low cost manufacturing facilities. The efforts to transform the Chinese economy into a hi-tech service-based economy have resulted in growth of the domestic software industry in recent years. The Chinese software industry is at the nascent stage but is growing rapidly. Moreover, several industrial verticals are embracing IT infrastructure across the country and helping the software industry to exploit its potential.

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