Company Study of Neusoft Corporation, 2009
  • Oct/2009
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Neusoft, founded at Northeastern University China in 1991, offers a rich portfolio of products and solutions, including industry solutions, product engineering solutions and related software products & platform, and services. As yet, Neusoft has become China’s largest offshore software outsourcing provider.

The 2008 global financial crisis exerted some bad influences on the business of Neusoft, but it maintained slight increase. In 1H 2009, its main business revenue attained RMB1.78 billion, up 8.4% from the same period of 2008.

Main Business Revenue of Neusoft, 1H 2009
Source: Neusoft’s Report, ResearchInChina

Growth of Neusoft Achievements mainly attributes to the following two factors:

First, more than 80% outsourcing business of Neusoft comes from Japan. Quantity of outsourcing business from Japan presented negative growth influenced by the economic downturn; yet, the orders of Neusoft maintained stable thanks to its strategic position. Thus, outsourcing business became the main driver for the growth of its achievement.

Second, domestic software and system integration business benefited primarily from IT investment growth of telecom and electric power industry.

In 2H 2009, Japanese economy shows the steady recovery; and Japanese enterprises will consider software outsourcing business by reducing cost. With accelerating informatization of electric power, telecom and social insurance industry, China demand for system integration of applied software of Neusoft shows a strong momentum. In addition, Neusoft purchased software suppliers of Nokia, which is favorable for its development. Based on its status quo and external environment, Neusoft will maintain fast steady growth in the future.

1. Profile

2. External Environment 
2.1 External Environment
2.2 Internal Environment
2.2.1 Chinese Companies’ Informatization Speeds up 
2.2.2 Software Outsourcing Business Gets Policy Support 

3. Operation 
3.1 Software Outsourcing Business Increases Rapidly 
3.2 China’s Software and System Integration Business Grow Steadily
3.3 Medical System Business Declines 
3.4 Achievements, 1H 2009

4.  Financial Results 

5. Strategies and Development Trends
5.1 Acquisition on Nokia’s Software Suppliers
5.2 Increase of Software and System Integration Business
5.3 Breakthroughs in R&D of Medical Products 
5.4 Development Plan in 2H 2009
Equity Structure of Neusoft, 1H 2009
Comparison between Japanese Consumer Electronics Output Value and Chinese Software Outsourcing Business Growth Rate
Labor Cost Comparison of Contract-issuing Party and Contractor
China Offshore Outsourcing Market Scale and Forecast, 2004-2010E
Chinese Enterprises’ Investments for Informatization, 2000-2008
Influence on A-Share Software Outsourcing Companies, 1H2009
Growth Rate of Outsourcing Business of Neusoft, 2007-1H2009
Key Financial Indices and Profitability of Neusoft, 2007-2010E
Profile of Nokia’s Key Three Software Suppliers Purchased by Neusoft, 2008
Neusoft’s Purchase Details of Nokia’s Key Three Software Suppliers
Revenue Forecast of Nokia’s Key Three Software Suppliers

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