Software Outsourcing Revenues of Neusoft Exceeded US$33 million in 2004

Neusoft Ranks No. 1 in China s Software Outsourcing Market

A recent survey report released by CCID Consulting, one of the most authoritative market and management consulting firms in China, shows that revenues from China's software outsourcing services market reached US$633 million in 2004 and eight companies had software outsourcing revenues of at least US$10 million.

Neusoft, China s leading software and solution provider, topped all other software manufacturers with US$33 million of software outsourcing revenues in 2004. That rapid growth of software outsourcing business of Neusoft and other software enterprises indicates Chinese software enterprises have made historic progress in terms of maturity level and internationalization capacity by successfully establishing a complete QCD system.

The report points out that Neusoft was the first CMM5 Certified Chinese enterprise around the world in 2002. In December 2004, Neusoft was certified CMMI Level 5, the highest quality rating assessment around the world.

In recent years, Neusoft has attached a strategic value on its software outsourcing business that produced significant outcomes in 2004. Offshore development, service localization and business scale expansion were three major breakthroughs that Neusoft has made in 2004. Nearly ten MNCs established their R&D centers in Dalian Neusoft Software Park, expanding Neusoft s software outsourcing service to overseas market.

In addition, Neusoft Japan succeeded in providing localized services and supports to Japanese clients by increasing input in the territory. Furthermore, Neusoft achieved a 30%-40% increase of business scale as more and more software outsourcing revenues were from core businesses of its clients.

In 2004, Neusoft cooperated with over 20 Japanese IT enterprises in the businesses of automobile electronics, digital TV, DVD, PDA, cell phone, finance, and ERP implementation, supported by a total technical staff of 1,800. In the meantime, Neusoft, based on its solid advantages in software outsourcing, has carried its success story into the promising BPO arena.

Dr. Liu Jiren, Chairman and CEO of Neusoft Group, said that software outsourcing is of great significance to both enhancing internationalization capacity of domestic software enterprises and increasing their influence on global community. Outsourcing service has become one of the global development trends and China will be a big player in software outsourcing. He further disclosed that Neusoft planned to upgrade its software outsourcing service to one of the most important and strategic businesses by promoting the ratio of software outsourcing in the overall business portfolio from present 10% to 30% in the coming five to ten years.

To accomplish such a strategic goal, Neusoft initiated a Software Factory Plan four years ago, which is to improve internal operations and management quality by inputting more into its quality assurance system and employees functional capacity evaluation work. Neusoft expects software outsourcing will exceed US$50 million in 2005.

Please direct your inquiries for details to:

Neusoft Japan URL http://www.neusoft.co.jp/
TEL 03-3570-9270 FAX03-3570-9320
Contact: YAMAKA yamaka@neusoft.co.jp

References:

CCID Consulting: http://www.ccidconsulting.com
Neusoft: http://www.neusoft.com/

About Neusoft Group

Neusoft Group, established in 1991 at Northeastern University, is a leading software and solution provider in China supported by a total staff of over 6,000. It has now a registered capital of RMB 1.244 billion Yuan. In 2004, the company achieved a sales revenue of RMB 2.4 billion Yuan. With more than 5,500 domestic business and public clients, Neusoft Group network covers four software parks located in the cities of Shenyang, Dalian, Nanhai and Chengdu, branches in over forty cities in China, and subsidiaries in US, Japan and Hong Kong.
Adhering to its consistent value to overseas marketing and international cooperation, Neusoft has maintained friendly cooperation relationships with MNCs from Japan, US, Korea, Finland, and the Netherlands. The company has also accelerated its steps in developing international market and undertaking international cooperative projects. Many of its software and medical products are exported overseas. Now, Neusoft ranks one of the largest software export bases in China. In 2004, its international business revenue, including software outsourcing and medical businesses, exceeded US$ 36 million, topping all other industry players in China.