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ChinaSoft International and Huawei Formed Joint Venture, Aiming Global IT Service Market
Apr 08, 2012 (11:04 AM EDT)
BEIJING, HONG KONG and NEW YORK, April 8, 2012 /PRNewswire-Asia/ -- China's leading comprehensive software and information service provider, ChinaSoft International ((hereinafter referred to as "ChinaSoft International") announced that its new joint venture company with Huawei Technologies Limited (hereinafter referred to as "Huawei"), the leading global information and communications technology (ICT) solutions provider, was officially established in the Xi'an High-Tech Industries Development Zone (XHTZ). This marked the commencement of operation of the joint venture company, ChinaSoft International Technology Service Ltd. (hereinafter referred to as "joint venture") after several month preparations.
In recent years, China's IT service market featuring outsourcing services has developed and expanded quickly. It is predicted that China's IT outsourcing industry will experience a golden period of development in the near future. Brand, quality, delivery capability as well as human resource will become the key to success. Under these market circumstances and based on their cooperation over the years, ChinaSoft International signed an agreement with Huawei on 12 January 2012, to establish a joint venture company specializing in software outsourcing business with ChinaSoft International holding 60% of the joint venture and Huawei holding 40%. The key decision-making body and management team of the joint venture will be comprised of senior managers from each company. Both believes that the new joint venture will fully merge many years' successful experience in outsourcing business of ChinaSoft International, and the mature quality and delivery management and HR management practice of Huawei and become a top-ranking software outsourcing company in the industry.
The annual revenue of joint venture is estimated to reach RMB 3.6 billion in the third year. Dr. Chen Yuhong, Chairman and CEO of ChinaSoft International, will be the Chairman of the new joint venture and Mr. Ding Yun, Senior Vice President of Huawei, will be a board member. The joint venture between ChinaSoft International and Huawei is the strategic choice of both sides. For Huawei, the joint venture is not simply a financial investment, but brings its years of good practices in quality management, R&D management and HR management into the joint venture to support the rapid development of the joint venture company. Both sides expect the joint venture to become the top-ranking software outsourcing company rooted in China and providing services to the customers worldwide.
For ChinaSoft International, the joint venture is another strategic partnership with a world-class leading company, following its strategic investment partnership with Hony Capital and Microsoft. Through collaboration with these global business leaders, ChinaSoft International will enhance its core competitiveness more rapidly. Furthermore, the joint venture will promote the pattern formation of domestic outsourcing industry and enhance the global competitiveness of China's software outsourcing industry. Dr. Chen Yuhong expressed his confidence during the Signing Ceremony. He said, "The joint venture in Xi'an is a crucial stage in its Western China strategic plan. ChinaSoft International and Huawei will share the common goal to develop and manage the joint venture and look forward to the bright future." Local government officials attended the Signing Ceremony, and Mr. Zhao Hongzhuan, member of Xi'an Standing Committee and Director of XHTZ said, "the local government will continue to provide good service and convenience for the joint venture between ChinaSoft International and Huawei in order to support the joint venture in Xi'an to become bigger and stronger, leveraging the local resource into industry advantages."
About ChinaSoft International Limited, "CSI" (354.HK)
For more information, visit Huawei online: www.huawei.com.
SOURCE ChinaSoft International Limited