UPDATE 1-China hiSoft eyes domestic software outsourcing mkt

* Sees China accounting for 40 pct of sales by end 2012

* Banking on multinational track record, strong home demand

* Stock up more than 100 pct since June IPO

(Adds details)

By Doug Young and Huang Yuntao

BEIJING, Oct 20 (BestGrowthStock) – HiSoft Technology (HSFT.O: ), a
top Chinese software outsourcing firm, expects the proportion of
its revenue from domestic clients to quadruple by 2012, banking
on strong demand for IT services, executives said on Wednesday.

The company, which listed shares on the Nasdaq in June,
believes it can generate about 40 percent of its revenue from
China by the end of 2012, compared with about 10 percent this
year, said Vice President Ross Warner.

He said hiSoft is drawing on its experience providing
services for global clients like General Electric (GE.N: ) and
Microsoft (MSFT.O: ) to lure in Chinese customers that have
generally weathered the global downturn better than their
Western peers.

“Obviously China is growing gangbusters,” Warner told
Reuters in an interview. “But China is coming off a small base.”

HiSoft, whose stock has more than doubled since its IPO, now
gets about 60 percent of its revenue from multinational clients,
while Japan provides about 30 percent and China the remainder.

The company is trying to carve out a space in the China
software outsourcing market, competing not only with domestic
rivals like VanceInfo Technologies (VIT.N: ) but also with Indian
giants like Infosys (INFY.BO: ) and Wipro (WIPR.BO: ).

Warner said Western multinationals are attracted to Chinese
companies like hiSoft in part because they want to diversify
from overdependence on India.

HiSoft expects its revenue to grow 50-60 percent this year,
with the company previously guiding to 2010 revenue between $139
million and $142 million.

Analysts expect that growth rate to slow by about half next
year, forecasting 27 percent growth in 2011 and 26 percent
growth in 2012, according to the average of five analysts polled
by Thomson Reuters I/B/E/S.
(Reporting by Doug Young and Huang Yuntao; Editing by Michael
Shields)

UPDATE 1-China hiSoft eyes domestic software outsourcing mkt