Hon Hai Steps Up Presence in Software Business

Taipei, March 20, 2009 (CENS)--Hon Hai Group Chairman Terry Gou recently said his company has recruited over 10,000 software talents, a statement coming after his company's success in poaching top software executives from several big-name companies and its establishment of a software company in Shenzhen.

All these moves are associated with Gou's statement last year that his group would make foray into the market for contracted software.

Industry watchers justify the group's software-production plan with the major factor that many of heavyweight IT-hardware suppliers like IBM, HP and Dell have already shifted their attention to services since the outbreak of global economic recession to bring down research and development spending, offering contract-software market a rosy business outlook.

The group has taken on former chief information officer of chip assembler Advanced Semiconductor Engineering (ASE) Inc., M.C. Sheng, and former general manager of Indian software manufacturer TATA Consulting's Taiwan branch, J.T. Ma.

Industry watchers pointed out that India is currently the world's biggest supplier of software outsourcing service, which offers brand-name software manufacturers software test and development services. Mainland China is rising to compete for a slice in the market.

They analyzed that Hon Hai owns some advantages that Indian software manufacturers lack in the competition and the primary one is its massive IT-hardware manufacturing, which offers software a development and test ground.