IT executives of multinational corporations are seeking sourcing opportunities with Chinese software companies, as China's software industry grows in strength and may eventually threaten India's leading position in the industry.

TIBCO Software Inc, a US business integration and process management software provider, signed a contract with Beijing-based Worksoft Creative Software Technology yesterday for a new China Development Center.

Under the contract, Worksoft will build and operate the only China Development Center for TIBCO in Worksoft's headquarters. Previously, a development center has been set up by TIBCO in India.

"The agreement allows us to access TIBCO's core business. The TIBCO China Development Center is expected to provide development, testing, localization and support services for a wide range of TIBCO's products and solutions," Jeff Wu, executive vice-president of Worksoft, told China Daily after the ceremony.

The center is expected to witness fast growth, with hopes that the number of engineers will surpass 100 within two years from the current 20, he said. "For TIBCO, it's an efficient way for risk mitigation while for Worksoft, the cooperation utilizes our deep understanding of the outsourcing industry and the capabilities in delivery."

After a 10-year operation in China, Worksoft, selected by IDC, a global market intelligence firm, as one of the top 10 leading Chinese software outsourcing providers in 2004, has employed 1,500 engineers and is forecast to earn US$20 million this year.

TIBCO also believed that the new collaboration with Worksoft could greatly expand its ability to deliver products and support its worldwide business.

To ride on the tendency that more multinational corporations intend to outsource their business to Chinese IT provider Gartner, the world leading IT consultancy firm is holding its well-established outsourcing summit in Shenzhen, one of the mainland cities with the most flourishing outsourcing businesses, running from December 5 to 7.

It is the first time that Gartner's event has been organized in Asia.

The event provides a valuable opportunity for buyers to understand Chinese markets and for sellers to learn about buyers requirements, said Jamie Popkin, group vice-president of Gartner Research.

(China Daily December 7, 2005)