Computer Services & Software
Taiwan
Overview
2004 2005 2006(estimated)
Total Market Size $4,603 $4,698 $4,739
Total Local Production 3,186 3,655 4,010
Total Exports 554 783 841
Total Imports 1,971 1,826 1,623
Imports from the U.S. 1,599 1,395 1,307
Notes: Figures are in millions of USD. The exchange rates (1USD=NTD) were NT$33.48 for 2004, NT$32.15 for 2005, and NT$32.50 for 2006 (estimated). The statistics are unofficial estimates.
Taiwan’s market relies heavily on imported software. U.S. computer service providers and software vendors have a strong reputation for providing integrated solution capabilities and high performance products with advanced features. However, due to cost considerations, more and more U.S. computer service providers are partnering with local IT service providers to better manage time-to-market and customization issues. Success in Taiwan depends largely upon product localization into traditional Chinese, business practice customization, and flexible pricing policies. U.S. market domination is expected to continue in the foreseeable future, despite increased competition from local and third-country suppliers.
Best Products/Services
· Business application software
· Information security solutions
· Storage solutions (hardware embedded software)
· Information system integration and consolidation solutions
· On-line learning/entertainment products and services
· Business intelligence-related applications
Opportunities
A new Taiwan e-Government Project will focus on the promotion and development of new service industries and Internet applications. However, political instability and the flight of manufacturing industries have dampened investment in the software and information services industries. The demand for legacy information technology systems integration and enterprise wide work flow systems is increasing. There is also increasing demand for software that supports the manufacturing sector, improves government workflow, and facilitates information system/platform consolidation. The mergers of financial holding companies require considerable integration of existing information systems, and this has stimulated the demand for software and information services. Rising awareness and concern for information security issues are driving the growth of the information security solutions and integration market.
The launch of Microsoft's Vista operating system will stimulate a wave of PC replacement that will also require additional investment in business productivity software such as Word and Excel. U.S. software manufacturers have the capability and experience for large scale and mission critical that are used in the high-tech manufacturing, banking, and finance sectors. These applications also include data storage requirements and custom-designed business intelligence features.
The demand for business applications for small-medium enterprises is also increasing. The increasing popularity of on-line games/shopping and on-line music and video content services has stimulated strong market demand for networking services. U.S. content providers and platform developers have business potential to work with domestic service providers. As firms integrate Taiwan into their China operations, the demand for robust communication links between China and Taiwan is bolstering the expansion of high speed networking hardware, software, and services.
Resources
Institute for Information Industry (III): http://www.iii.org.tw
Industry Technology Research Institute (ITRI): http://www.itri.org.tw
Firms interested in the relevant trade shows should contact Taiwan External Trade Development Council at taitra@taitra.irg.tw for detailed information.
U.S. firms wishing to learn more about the CSV/CSF market are also encouraged to contact CS Taiwan, Jacy Huang, Commercial Specialist, at Jacy.Huang@mail.doc.gov or visit the website http://www.buyusa.gov/taiwan/en