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The city spent a total of 233 million yuan (US$29.5 million) to support the development of the software industry between 2001 and 2005.

Xiao said the city aims to draw 10 globally renowned multinational software companies by 2010 to develop software outsourcing businesses.

In addition to domestic software companies, several multinational software companies, including Germany-based RIB Group, Japan-based Transcosmos and India-based Tech-Mahindra have set up in Guangzhou for software outsourcing.

Xiao said Guangzhou will create a mechanism for closer co-operative ties in software development with Hong Kong by encouraging software enterprises to join hands to secure software outsourcing businesses.

Chen Xiaoguang, an associate professor of the software school, South China University of Technologies, said Guangzhou has laid a solid foundation for sustained development of the software industry in terms of economic development, human resources, and software development capabilities.

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