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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.

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china s software industry planning to win

China’s Software IndustryPlanning to Win

How Ireland can be China’s Ally

market background
Market Background

Darach McEvoy

Director, Cornerstone

china must be better than india
China must be better than India
  • Technical ability
  • Project management ability
  • Software quality
  • Software development speed
  • English language ability
  • Technical negotiation skills
ireland can be china s partner
Ireland can be China’s Partner
  • 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
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
Overcome the Problems
  • 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
25 Different Languages in EuropeOnly 14% Use EnglishIreland is English Speaking
  • Population 458 million
  • Ireland is the main localisation centre for Europe
  • China and Ireland can work together
ireland business position
Ireland - Business Position
  • 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
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
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 is a safe location
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
advantages of using ireland
Advantages of Using Ireland
  • Local face – customers like it
  • Close to the market
  • Opportunities for partnerships
  • Tax advantages
share the cost incubator center
Share the Cost - Incubator Center
  • Dedicated office
  • Serviced offices (16 locations in Ireland)
china must give and take
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
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
Asia Trade Forum
  • Irish Exporters Association will support Ireland-China software initiative
  • Cornerstone can provide the premises and services to help
next steps
Next steps
  • Training and certification
  • Business relationships
  • Exchanges
  • R&D relationships
  • Incubator centre in Ireland
training certification
Training & Certification

Kraken Yu

Director, Cornerstone

Member of the Council of the Asia Trade Forum