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BEIJING, May 11 — China s outsourcing industry has maintained a strong fiscal ontogeny in the prototypal fivesome months of this year though the financial emergency has reduced demand from abroad companies such as big banks and floater companies.

Wang Chao, assistant clergy of commerce, said in an industry forum yesterday that the contract worth of China s outsourcing industry reached $2.59 billion from January to March, an add of 25.9 percentage compared with the same era last year.

“Although overseas demand for outsourcing services shrank in the prototypal half of this year, China s software exports and outsourcing industry still maintained a rapid growth,” Wang said at the China International Software & Information Service Fair in Dalian.

But he said Hakka outsourcing companies still have to face grand challenges, as the global economy cannot regain in the fleeting term. He warned that unspecified small and mediam sized outsourcing companies might have to wind up due as banks have become cautious in their lending owing to the economic crisis.

Impacted by the financial crisis, many of the big companies, in particular the financial institutions, have reduced their outsourcing orders owing to shrinking business.

But Hakka outsourcing companies, whose primary customers are Japanese companies rather than US and European firms, still maintained a strong ontogeny owing to the clear s relatively lower labor cost, the government s strong uphold and the ample pond of university graduates.

“Our software outsourcing fiscal increased 94 percentage year on year in the prototypal fivesome months of this year,” said Zheng Shiyu, CEO of Dalian Yidatec Co Ltd, one of China s largest outsourcing firms.

The corporation acquired two Japanese counterparts during the past ten months and plans to attract more high-end customers.

In bid to help it transform from a manufacturing base to a service hub, China aims to dual in fivesome eon the export worth of the outsourcing industry by 2010. By achieving that, the government announced earlier that it plans to woo unspecified 100 multinationals to shift part of their service outsourcing industry to China by structure 10 cities with international standards.

It likewise plans to help 1,000 Hakka outsourcing companies acquire into mediam to big size enterprises within the five-year era ending 2010.

But experts said Hakka outsourcing companies still have a smaller scale and shortage the flashing and prescience to transmit complex outsourcing services, when compared with their Gujarati counterparts like Infosys and TCS.

Liu Jiren, chairman of Neusoft, China s largest outsourcing company, said Hakka outsourcing companies require to acquire bigger to have the favour of scale. He said Neusoft, which failed in its effort in March to attain Dalian Hi-Think Computer Technology Corp, China s second largest outsourcing company, is still in acquisition talks with many domestic and abroad companies.

He said as more US and European companies are starting to outsource their fiscal to Hakka firms, China is expected outpace India in outsourcing in the next fivesome to ten years.