Transcript Fuzhou

China’s Software Industry
Planning to Win
How Ireland can be China’s Ally
Market Background
Darach McEvoy
Director, Cornerstone
Europe + USA = 73.5% of
World IT Market 2004
Ireland at Center of 73.5% of
World IT Market
IRELAND
China software exports to grow
44% p.a.
2500
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1500
1000
500
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2003
2004
2005
2006
2007
2008
Ireland the World’s No 1 Software Exporter (2002)
(OECD/Eurostat 2004)
Exports
US$ Billions
As % of All
Exports
% of GDP
10,377
9.1
8.5
USA
6,930
0.7
0.1
Germany
5,162
0.7
0.3
Great Britain
4,463
1.1
0.3
Spain
2,483
1.3
0.4
All OECD
42,200
0.7
0.2
All EU
30,646
1.0
0.3
Ireland
Where does USA outsource
software?
(Source: IDC)
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India
Canada
Ireland
China
China must be better than India
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Technical ability
Project management ability
Software quality
Software development speed
English language ability
Technical negotiation skills
Ireland can be China’s Partner
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Only 4 million people
1.5% Chinese!
English speaking
No natural resources except people
Minimal bureaucracy
Highly supportive Government
Ranked as No.1 Most Global country for last
3 years
(AT Kearney)
China – Ireland Political
Relations
• High level of political and government
co-operation
• Irish Government has an “Asia Strategy”
to develop co-operation with China
• Visit by Premier Wen Jiabao in May
2004 the latest official visit by both sides
Overcome the Problems
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Geographic distance
Time zone distance (also an advantage)
Language
Culture
Business understanding
Methodologies
25 Different Languages in Europe
Only 14% Use English
Ireland is English Speaking
• Population 458
million
• Ireland is the
main
localisation
centre for
Europe
• China and
Ireland can
work together
Ireland - Business Position
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Government 100% pro-business
Stable government and politics
Low business profit tax of 12.5%
Access to venture capital
Access to R&D funds
Major Tax Advantages
• 12.5% tax on profits
• 32.5% tax credit for R&D
• Special tax advantages for operating a
HQ
• No tax on selling subsidiary company
• No tax on patents, licences, etc.
Ireland’s Position in IT industry
• Bridge for US firms for Europe
• Knowledge based economy
• Media Lab Europe - European Partner
of famous MIT Media Lab in
Massachusetts
• Government strategy to support
– R&D
– Sales and marketing
Ireland got almost half the FDI of
China in 2002!
(UNCTAD/WIR/Overview 2003)
Ireland is a safe location
• Highly regarded member of EU
• Politically and financially very stable
• Close relations with USA
– Family relations
– Good political relations
– US Immigration in Ireland’s airports – only country
in Europe
– American Arbitration Association has branch in
Ireland
Ireland – Closer than China even
to West Coast USA
From…
Beijing
Dublin
Los Angeles
10,080 km
8,300 km
New York
11,000 km
5,100 km
London
8,145 km
400 km
To…
Advantages of Using Ireland
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Local face – customers like it
Close to the market
Opportunities for partnerships
Tax advantages
Share the Cost - Incubator
Center
• Dedicated
office
• Serviced
offices (16
locations in
Ireland)
China must GIVE and TAKE
• 3.4 million US jobs to move offshore by
2015
• Politically sensitive
• Backlash already against India
• Therefore create goodwill
• Bring new jobs to Europe and USA
• Co-operate in R&D
Opportunities for Chinese Firms
• Partner for US and European firms in
China
– Localisation
– Sales and support
• Software development centers
• R&D centers
Asia Trade Forum
• Irish Exporters Association will support
Ireland-China software initiative
• Cornerstone can provide the premises
and services to help
Next steps
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Training and certification
Business relationships
Exchanges
R&D relationships
Incubator centre in Ireland
Training & Certification
Kraken Yu
Director, Cornerstone
Member of the Council of the Asia Trade
Forum
Extreme Programming
Agent Oriented Software
Engineering
World ICT Value 2004