Software park claims 600% growth over five years

08:40, January 20, 2010      

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With a 600 percent turnover increase over the last five years, Shanghai Universal Software Park is expected to expand over the coming years.

From millions to billions, it took only five years for the Shanghai Universal Software Park to grow its turnover by a stunning 600 percent. Back in 2005 its output was 300 million yuan, but in 2009 the figure reached an incredible 2 billion yuan.

Established by Shanghai's Putuo district government in 2004 and located in the southwest of the area, the software park is one of the city's largest hi-tech industrial zones with a total area of nearly 100 mu (6.67 hectares) and a built-up area of 110,000 sq m.

Focusing on the software, IT services, cultural creative and LED industries, the park consists of 26 garden-style factory buildings and the park currently has a business occupancy rate of 98 percent.

Over the past five years, more than 180 companies have established business premises in the park, with 60 percent of them engaged in service outsourcing.

In 2005, tax revenue from the park was 2.5 million yuan, whilst, in 2009, the figure rose to 73.88 million.

As of 2009, investment in the park reached 710 million yuan, total tax revenue was 130 million yuan, registered copyrights reached 200, the confirmed number of software firms was in excess of 20, and the total of employees on the site was more than 8,000, with Bachelor or above degree holders accounting for more than 60 percent.

Infrastructure growth

After years of development, the park now has a state-of-the-arts platform of broadband digital communications. With a network of "1000MB as the backbone, 100MB on the desk-top" and a computer center covering more than 300 sq m, the park can now provides 10-100MB for every end-user.

A number of telecom operators and network operators, including China Telecom and Shanghai Science & Technology Network Communications Corporation, have all set up separate telecommunication facilities in the park in order to provide businesses with the best landline and broadband network services.

China Mobile, China Unicom and China Telecom are also providing a high level of mobile services through their coverage of the park with high quality GSM and CDMA signals.

In 2007, China Telecom's Shanghai branch said the park represented a model industrial zone for information application. Since then, the operator has been providing the park's service outsourcing companies with its highest level of broadband services. In 2005, China Netcom's Shanghai branch also invested more than 10 million yuan in developing a core computer center in the park, with an eye on future profit from the park's ongoing development.

The park has also established a public service platform for animation production and a training base for multimedia professionals, whose skills are in short supply.

Business and living conditions have also been improving in the park. Its 24-hour and full coverage surveillance system and electronic patrol system have boosted the security of businesses throughout the park.

Outsourcing industry

After a period of industrial restructuring, service outsourcing has become the main business of the park. Software outsourcing, animation and the LED industries have dominated the park's service outsourcing business and have accrued a considerable scale.

The establishments of the service platform for animation production and the outsourcing talent training base have also strongly promoted the development of the park's service outsourcing industry.

There are currently around 100 service outsourcing e-businesses engaged in animation and computer games production, software outsourcing and LED production in the park. The companies represented include the American LED chips manufacturer, Cree Inc, and OPTILED Lighting International, a leading expert and provider of LED lighting solutions.

The park has also attracted several joint-ventures and domestic firms, including the Shanghai Okasan-Huada Computer System Co, regarded as one of Shanghai's top 10 software exporting companies since 2008 and the Shanghai Sakura Information System Co, which was backed by the Ministry of Commerce's service outsourcing talents fund in 2008 and was regarded as one of Shanghai's most advanced technology service businesses in 2009. UltiZen Games, one of China's top 10 game art outsourcing firms, is also based in the park.

Management of the park

The management of the park not only helps firms look to do business in the park with registration services, but also provides a range of other services, including financing, assurance, law, accounting, and intellectual property rights protection.

The management team also holds lectures on the country's technology policy, large scale job fairs, and enterprise managers' salons to assist the park's businesses in getting the necessary industrial information, recruit staff and attract venture capital.

The company has now shifted from being purely a management service provider to taking overall charge of promoting the development of the park and responsibility for the park's investments, as well as providing value added services.

It has also been expanding the park's development space through capital management. It plans to acquire around 44 mu of the park's surrounding area to construct more office buildings in a bid to establish new industry clusters.

Currently, construction has begun on the part of the land that has already been acquired.

Source: China Daily
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