Software outsourcing on upward curve

But Chinese companies need to upgrade to stay competitive

China's software outsourcing industry is expected to grow further despite climbing labor costs and increasingly intense competition from overseas.

"The software industry will play a more important role as the Internet-based services continue to expand globally," said Li Yuanming, president of Dalian Software Industry Association. "Globalization in the software-making industry could provide more clients for Chinese software companies."