Oracle to Double R&D Facilities' Expenditure in China

Home>>Sci-Edu

Last updated at: (Beijing Time) Tuesday, March 26, 2002

Oracle to Double R&D Facilities' Expenditure in China

DISCUSSION

CHINESE

SEND TO FRIEND

The world's largest business software producer Oracle is planning to double its expenditure in China by setting up localized research and development centers in a number of major cities over the next decade.

Executive Vice-President of Oracle Corporation Derek Williams told Xinhua Tuesday that developing business software purely for the local market will be at the core of Oracle's strategic planning for its China operations over the next 10 years.

Oracle signed an agreement with the municipal government of Shenzhen on Monday to set up a R&D center in the south China coastal city. Oracle sources say the R&D center will begin operation in May and quickly expand its staff to more than 100. Within five years it will become Oracle's strongest R&D base outside the United States.

"It is the right time to make this decision. People in China who leave it two or three more years will miss out on important market opportunities," said Williams, who is in charge of the AsiaPacific Division of Oracle.

He said the application and acquisition of business software will quickly pick up now that China has entered the World Trade Organization (WTO). China's telecommunication sector will continueto be a fast growing consumer of software and other IT products. As Chinese people earn more the increase in mobile commerce will create demand for business software.

The opening of the banking sector to foreign investors will accelerate the transformation of local banks, which will bring a huge demand for IT applications in risk management and other aspects.

As Chinese manufacturing companies strive to upgrade their performance and competitiveness, they will need more help from specialized software suppliers to meet international standards.

Williams said the rapid development of transportation in China will also create big opportunities for software suppliers. Oracle is already closely linked with the booming aviation industry in China.

The Shenzhen R&D center will be the first of similar facilitieswhich in the future will be set up in other major cities around China, he said.

Instead of producing generic software for the global market as other Oracle R&D centers do, the Shenzhen R&D center will focus ondeveloping software to fit the needs of Chinese businesses.

After 10 successful years in China, Oracle will once again havethe edge over its competitors by making the strategic move of localizing its services, Williams said.

Since it entered China more than 10 years ago, Oracle has set up branches in the cities of Beijing, Shanghai, Guangzhou and Chengdu, with a total staff of more than 300.

Questions?Comments? Click here

Overseas Investors Eye Shanghai Market after China's WTO Entry