Microsoft to build services delivery center in China

Software vendor agrees to build the center in Chongqing to offer software consulting, application development and delivery services.

Microsoft has agreed with the government of Chongqing Municipality to build its global services delivery center in the Chinese city, and it will aim to garner sales revenue of US$200 million within three years.

Xinhua reported Wednesday the two parties inked a deal to build the services delivery center, which will offer software consulting, application development and delivery services to customers. It is similar to the arrangement in India when the company established Microsoft Global Services India, it noted.

While initially servicing Chongqing businesses, the center will eventually cover Greater China, Japan and South Korea, the report noted although no timeframe was stated. This market coverage should help the business achieve sales revenue of US$200 million within three years, it added.

Chongqing Mayor Huang Qifan said the establishment of the center, as part of the city's "Cloud Plan", will boost the development of its IT industry. He added the city's IT output is expected to exceed 600 billion yuan (US$96.77 billion) by 2015. 

The U.S. software giant has made big strides in China in recent times. It had in April inked a deal to set up an innovation center in China's Hainan province to enhance the region's IT development and skills. Last week, the company also said it will offer the public preview of its Windows Azure service --the first public cloud service offered by a multinational company in China, it touted--in June via its local partner 21Vianet.



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