I. Scale

In 2007, the revenue of China's software industry reached US$84.55 billon (including embedded software). This is a 21.5% increase in comparison to the previous year. China's software industry growth rate had excedded 30% in each of the last seven years. The share of China's software industry in the global software industry increased from 7.1% in 2006 to 8.7% in 2007, and ranked No. 4 in the world.

In 2007, the revenue of Beijing's software industry reached US$18.144 billion. From 2003 to 2007, the average annual growth rate of Beijing's software industry is 30.9%, which ranks No. 1 in China, taking up 21.5% of the total of China's software industry.

II. Industry Structure

In 2007, the salesincome of software products (including embedded software) is US$45.0 billion, taking up 53% of the total amount. The sales income of system integration and software service is US$36.7 billion, taking up 44% of the total amount. The software exports volume reached US$10.24 billion, an increase of 69% from the year before, contributing 12.46% of the total. In 2007, the domestic markets contributed more than 86.5% to the total income (refer to the charts below)

III. Software Exports

From 2005 to 2007, the compound annual growth rate (CAGR) rate of China outsourcing services markets reached 42%. The software exporting scale increased from US$3,590 million in 2005 to US$10,240 million in 2007.

In 2007, Beijing's software export increased rapidly and topped US$459 million for the first time.
In 2007, among the US$459 million of Beijing's software outsourcing markets, US$261 million contract came from the Japanese market, taking up 56.9% of the market shares. Thus, Japan has become the primary demand market of Beijing's software outsorucing services. With the exploration of US markets, the US market scale reached US$74 million. Compraed to 2006, it increased by 16.2%, the highest growth rate among all outsourcing markets.

IV. Software Companies

As of the end of 2007, there were 18,000 software compaines in China altogether, among which 4,335 are registered in Beijing, taking up 24% of the total number in China.

V. Software Talents

In 2007, China software industry workforce increased to 1,480,000.

By the end of 2007, the number of software employees in Beijing alone has gone beyond 241,000, taking up 18% of the total in China. The average growth rate stays at 21.7%. Beijing ranked No. 1 nationwide in terms of the total number, structure and quality of software employees. Moreover, the employees in Beijing are mostly well-educated.

VI. Highlights of Biejing software industry 2007