Check on China: VanceInfo Technologies Inc.

Over the last decade or so, large PC makers and Western IT giants have invested heavily in the Middle Kingdom, helping China become a major center of computer manufacturing. But the nation's success in the hardware arena has yet to trickle into the software side of the business. That is destined to change.

China's software and technology services industry revenues grew to nearly $14 billion in 2007, an almost 25% increase over the previous year, according to the Ministry of Information Industry. And the Chinese government and domestic software players are committed to gaining a foothold in global markets.

While no homegrown firms currently poses a real threat to the United States’ and India's dominance in software and tech services, one little-known Chinese technology outfit can’t be ignored.

Meet VanceInfo Technologies Inc. (NYSE:VIT), one of China's leading offshore software development and information technology services companies. The firm, which was incorporated in April 2004 and went public in U.S. markets in December 2007, develops software products and provides a broad range of services for software systems, including research and development, application development and maintenance, enterprise solutions, quality control, and globalization and localization. VanceInfo primarily serves corporations based in China, Japan, the United States and Europe, focusing on high-growth industries such as technology, manufacturing, financial services, telecommunications, retail and distribution. Its clients include Microsoft Corporation (Nasdaq:MSFT), IBM Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Citibank Inc. (NYSE:C) and Motorola, Inc. (NYSE:MOT).

The company has grown its business through acquisitions. In September 2006, it snapped up Beijing Prosoft Software Technology Co., Ltd., followed by the IT services arm of Beijing SunBridges Technologies Development Co., Ltd. in December 2006. In March 2007, it bought out Beijing Innovation Technology Co., Ltd., an IT service provider specializing in R&D services. In May of last year, it acquired a 75% stake in Shanghai Solutions Software Co., Ltd. and purchased an additional 48.99% of the equity interest of Worksoft Japan Inc. Finally, last July, it acquired Beijing Chosen Technology Co., Ltd., a firm that provides various services similar to VanceInfo's.

On March 10, Huawei Technologies, a leading Chinese telecom firm that reviews and ranks its vendors, gave VanceInfo its highest rating for R&D services vendors, a testament to the acceptance rate, timely delivery and management stability of VanceInfo's projects. As the top-ranked company, VanceInfo will . . .

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