Outsourcers shift to the cloud

Chinese software and service outsourcing enterprises are turning to cloud computing as part of their strategies to face emerging challenges from intensified global competition and rising domestic salaries.

"Cloud computing is having a strong impact on the outsourcing sector. The traditional outsourcing business might shrink by 40 percent within three to five years," said Xu Zhen, chief architect of Newtouch Cloud, a division of Shanghai Newtouch Software Co Ltd.

Cloud computing standardizes resources, thus greatly cutting cost and time. By registering an account, anyone can buy solutions according to their need, Xu told China Daily during the China International Software and Information Service Fair 2016, which was held last week in Dalian, northeastern China's Liaoning province.