The Dalian Software Park (DLSP) is a core project in the city's efforts to outpace other destinations as a top choice for software outsourcing companies.

The transformation has been an enormous success since the late 1990s, boosting Dalian's revenues, improving its environment, transforming the city and setting the competitive landscape for industrial innovation.

Though gaining market share both countrywide and globally, today the DLSP faces a slew of new competitors such as Nanjing, Chengdu and Beijing - in addition to longstanding outsourcing giant Bangalore in India.

But many analysts believe Dalian has struck gold with its two-frontier strategy emphasizing both the Japan-led East Asia market and English-speaking countries.

The DLSP will further lift its quality of services to consolidate its position as China's leading high-tech park developer and become an even bigger office for global players, according to Gao Wei, DLSP president.

Despite the financial turmoil of the past two years, the park's business has continued to grow with international firms such as Genpact opening new office buildings and newcomers including CISCO, Softbank and Sompo Japan Insurance establishing operations.

The financial crisis has put pressure on multinationals to further cut costs by outsourcing part of their work, which generates more business opportunities for the park's tenants, said Gao.

The DLSP began moves to expand in 2003 when construction of its second phase began. Yida teamed with Hong Kong's leading property developer Shui On Group in 2007 for a 30-70 joint venture to develop part of the second phase of the Dalian Software Park.

Shui On will lead the planning, project management, quality assurance, sales and marketing while Yida Group is mainly be responsible for construction management.

With total floor space of about 3.54 million sq m, the 30 billion yuan Dalian Tiandi project is a sprawling integrated development with residences, software offices and commercial and retail property, along with educational and R&D facilities, outdoor recreation and other public amenities.

The project represents only a part of DLSP's 133 sq km second phase, with other projects including joint ventures with Singapore commercial developer Ascendas and domestic software giant Neusoft.

Apart from development in Dalian, Yida plans to replicate the business model in other regions by establishing joint ventures with a number of local governments. The group has now established park operation in Tianjin, Wuhan and Suzhou. Wuhan Optical Valley Software Park now has more than 110 enterprises and 12,000 workers.

(China Daily 06/23/2010 page15)