Large software outsourcing companies are now getting bigger and stronger by taking over smaller and weaker ones. Companies such as Shenyang-based Neusoft Group Ltd. and Beijing-based Beyondsoft Co. Ltd. were ranked as the world top outsourcing companies by the International Association of Outsourcing Professionals last year. As Japan provides 60 percent of China's outsourcing contracts now, the coastal seaport city Dalian has become a software-outsourcing base because of its geographical proximity to Japan. It also established a software park in Tokyo last December.

Measures to Revitalize the Electronics and Information Industry

1. Optimize the industrial structure while ensuring steady growth in pillar sub-sectors, focus on shoring up the competitiveness of the computer industry, rev up product upgrades of electronic components, and promote the audio-visual industry to focus on digital products.

2. Encourage breakthroughs in core technologies to establish China's independent integrated circuit industry, break down bottlenecks in making new types of display panels, and enhance the independent development capabilities of the software industry.

3. Promote the application of information technologies in various fields, encourage service innovation and cultivate new growth points in such fields as information services and information technology applications.

To fulfill the tasks, the government pledged to:

1. Boost domestic demand in a bid to offset weakening global demand and increase fiscal input in six projects while encouraging private capital investment in the industry. The six projects include technological upgrades in integrated circuits manufacturing, the development of new types of displays in color television manufacturing, innovation of 3G mobile communication services, promotion of digital TVs, computer technology upgrades and Web 2.0 applications, and the development of information services.

2. Shore up the industry's capabilities for independent innovation through developing key national science and technology projects, encouraging companies with competitive advantages to merge or acquire smaller ones, and improving public technological service platforms.

3. Promote companies in this industry to develop outsourcing services and encourage them to build research and development centers, manufacturing bases, and overseas marketing networks.

4. Promote the integration of telecommunications, radio and television broadcasting, and computer services; adjust recognition standards for hi-tech enterprises; offer tax rebates for electronic and information product exports; encourage more bank loans and export credit insurance services for export-oriented companies; and launch more pilot programs for corporate bond issuance among small and medium-sized companies.