"More and more Chinese businesses will have to update their enterprise-management systems in order to sharpen their edge against foreign competitors and to adapt to world advanced methodologies after China joins the WTO,'' said Jiang Hao, marketing director with Kingdee International Software Group Co Ltd, the targets domestic enterprise resource planning (ERP) software maker and business management software giant.

According to the forecasts of International Data Corporation (IDC), a worldwide IT market research firm, the market of enterprise-management software reached 5.9 billion yuan (US$710 million) last year and will grow at an annual rate of 65 per cent in the coming years.

To grasp the opportunities, domestic software makers have strengthened their competition in the market.

Kingdee, a Hong Kong-listed management software business, has said it would buy one or two enterprise resource planning software makers to reinforce their presence in the market.

"We hope these firms will elevate our position in sectors including telecommunications, electricity, finance, and governmental organizations,'' said Jiang.

It was revealed that the company had set their eyes on several software businesses in Beijing, Shanghai and Wuhan and that negotiations had got under way.

Meanwhile, the Beijing-based UFSoft Co Ltd also invested 60 million yuan (US$7.2 million) in the development of its New Century (NC) management software, which may be released in October.

"The aim of NC will be face-to-face competition with international giants like SAP and Oracle and it will become the most important product of UFSoft in three years,'' said Guo Xinping, general manager of the biggest management software company in China.

The company also said it would buy six to seven management software makers and that the securities sector would become a targeted industry for the business.

However, software experts expressed their reserved attitude to the optimistic prospect of business-management software.

"Chinese businesses are still behind their international rivals in terms of technology and their lack of experience in international markets will also hinder their expansion,'' said Cheng Yichong, an IT columnist.

(China Daily 08/21/2001)