Shanghai's software industry revenue jumped 25.3 percent year-on-year in 2008, double the city's gross domestic product growth rate, despite the influence of the global financial crisis, the local government said on February 9.

Last year the revenue of the industry reached 100.48 billion yuan (US$14.77 billion) while the city's GDP rose 9.7 percent, according to the Shanghai Municipal Economic and Informatization Commission.

Software exports were valued at US$757 million in 2008, a jump of 28.7 percent year-on-year. The major export markets included Japan, the United States, France and Uzbekistan.

"It was not an easy year for the industry as the global economy slumped," said Shao Zhiqing, vice director of the commission. "We are glad software enterprises continued to grow amid the tough environment."

The city government will encourage mergers and acquisitions in the industry to create more giant IT enterprises, whose annual revenue will surpass 100 million yuan, Shao said. The government will continue to support the development of the software industry, promote innovations and offer a tax rebate.

In 2008, the software industry's combined profit hit 14.3 billion yuan versus 12.1 billion yuan in the previous year. Firms whose annual income surpassed 100 million yuan last year accounted for more than 80 percent of the industry's profit, according to the commission.

(Shanghai Daily February 10, 2009)