By
Telecom Lead Team: Huawei and ChinaSoft International announced
their agreement to establish a joint venture company specializing in the
software outsourcing business.
ChinaSoft
International will hold 60 percent of the joint venture and that Huawei will
hold 40 percent.
Huawei
is an important client of ChinaSoft International’s outsourcing business, and
it has experienced high quality and cost-effectiveness of ChinaSoft
International’s delivery and outsourcing services. ChinaSoft International is
familiar with Huawei’s management practices. By combining the qualities of both
companies into this new joint venture, both companies can contribute to the
creation of this new, top-ranking software outsourcing company.
We
are expecting to reach our strategic goal of 10 billion RMB in 2015 through
restructuring. The joint venture with Huawei is another strategic partnership
with a world leading company following our partnerships with Hony Capital
(Legend Group) and Microsoft. These partnerships will enable us to boost our
competitiveness,” said Chen Yuhong, chairman and CEO of ChinaSoft
International.
Chen
Yuhong will be the chairman of the Board of the new company.
For
Huawei, it is not simply a financial investment. We will contribute management
and key technology staff to the joint venture so that we can provide it with
optimal support by sharing our best practices regarding the management of
quality, R&D as well as human resources,” said Ding Yun, senior vice
president of Huawei,
who will become a board member of the joint venture company.
Given
the rapid development of the IT industry as well as the overall economy in
China, the emergence of a China-based IT service provider that is globally
competitive has been seen by many within the industry as inevitable. This
strategic partnership between ChinaSoft International and Huawei lays the
foundation for this to occur.
Recently,
Huawei announced that Huawei Enterprise’s contract sales revenue increased by
80 percent in H1 2011 compared to the same period last year.
The business group is on track to double its global
contract sales to $4 billion this year as it expands its global market share in
the enterprise space and achieves significant growth in strategic markets such
as North America and Europe.
Huawei Enterprise also plans to strengthen its leadership
position in Asia and place strong emphasis on markets such as the Middle East,
Russia and Brazil.
