HiSoft

HiSoft was a China-based information-technology services and business-process outsourcing company headquartered in Dalian. Established in 1996 as Dalian Haihui Sci-Tech Co., Ltd., it developed from a Chinese software-services provider into an international outsourcing business serving customers in Asia, Europe, and the Americas. Its work included software development, application testing, software maintenance, globalization and localization services, and related technology support. The company built an international operating structure during the 2000s. It established a Japanese subsidiary in 2002, initially called Haihui Sci-Tech Japan and later renamed HiSoft Japan. In 2004, HiSoft Technology International Limited, a Cayman Islands holding company, was formed above the operating entities. The business also attracted venture-capital and strategic investment from a group of international and regional investors, including Draper Fisher Jurvetson ePlanet Ventures, GGV Capital, GE Commercial Finance, the International Finance Corporation, Intel Capital JAFCO Asia, Mitsubishi UFJ Securities, and Sumitomo Corporation Equity Asia Limited. HiSoft’s commercial model focused on providing lower-cost and geographically distributed technology capabilities to international enterprises. Its customer base included Fortune 500 companies, particularly in telecommunications, software, financial services, pharmaceuticals, and manufacturing. The company reported that approximately 35 percent of its clients were Fortune 500 companies in 2009, and that these accounts contributed more than half of its revenue. Its reported geographic customer mix at that time was weighted toward the United States and Europe, followed by Japan and China. The company expanded both organically and through acquisitions. It acquired or incorporated businesses and operations associated with Envisage, Ensemble International, and Teksen Systems, and established a presence in the United States, Singapore, and Japan through acquisitions, partnerships, and joint ventures. In July 2011, it acquired NouvEON Technology Partners, a technology-services company based in Charlotte, North Carolina. In July 2012, it acquired BearingPoint Australia for an undisclosed amount, further extending its regional delivery and consulting capabilities. HiSoft became a public company on NASDAQ in June 2010 through an initial public offering of American depositary shares. The offering was described as having a value of approximately $64 million to $74 million, and the listing made HiSoft one of the Chinese companies then traded on the exchange. Its workforce expanded substantially, from about 3,000 employees at the end of 2007 to more than 5,000 by September 2010. The company was also included in the International Association of Outsourcing Professionals’ Global Outsourcing 100, where it was described as the only Chinese company on the 2010 list and as a leading provider in China and Japan. HiSoft remained independent only until late 2012. In November of that year, it merged with VanceInfo, another major Chinese information-technology outsourcing company. The transaction created Pactera, combining two China-based providers with international delivery networks. The HiSoft corporate entity and standalone brand therefore ceased to operate as an independent public company, although its personnel, capabilities, contracts, and operating assets became part of the merged business.

HiSoft began in 1996 as Dalian Haihui Sci-Tech Co., Ltd., a software and technology-services company based in Dalian, China. During its early development, the business participated in the growth of China’s software and outsourcing sector, using Dalian’s emerging software-park ecosystem and its access to technically trained labor to serve domestic and international customers. The company’s first major international expansion came in 2002, when it established Haihui Sci-Tech Japan Co., Ltd. That subsidiary was later renamed HiSoft Japan Co., Ltd., reflecting the wider use of the HiSoft brand. In 2004, HiSoft Technology International Limited was organized as a Cayman Islands holding company, with the operating businesses placed under its corporate structure. The company subsequently raised capital from a combination of venture investors, financial institutions, and strategic investors, including Draper Fisher Jurvetson ePlanet Ventures, GGV Capital, GE Commercial Finance, the International Finance Corporation, Intel Capital JAFCO Asia, Mitsubishi UFJ Securities, and Sumitomo Corporation Equity Asia Limited. HiSoft’s services covered software development, testing, maintenance, globalization, localization, and business-process outsourcing. It pursued multinational customers in telecommunications, software, financial services, pharmaceuticals, and manufacturing. The company’s delivery model combined operations in China with international customer and delivery locations. By 2009, HiSoft reported that roughly 35 percent of its customers were Fortune 500 companies and that those accounts generated more than 55 percent of revenue. It also reported that customers based in the United States and Europe accounted for the largest geographic share, followed by Japan and China. The company expanded through acquisitions, partnerships, and joint ventures. Activities associated with Envisage, Ensemble International, and Teksen Systems contributed to its international operating footprint, while the company established or expanded operations in the United States, Singapore, and Japan. In July 2011, HiSoft acquired NouvEON Technology Partners in Charlotte, North Carolina. The transaction strengthened its North American presence and added technology-services capabilities in a major U.S. business market. In July 2012, HiSoft acquired BearingPoint Australia for an undisclosed amount, extending its regional reach into Australia. HiSoft’s growth was accompanied by a rapid increase in employment. Its workforce rose from approximately 3,000 people at the end of 2007 to more than 5,000 by September 2010. The company received external recognition in the International Association of Outsourcing Professionals’ Global Outsourcing 100. It had appeared on the list since its inception in 2006 and was identified in 2010 as the only Chinese company included that year, as well as a leading provider in China and Japan. On June 30, 2010, HiSoft completed an initial public offering of American depositary shares on NASDAQ. The offering was described as raising approximately $64 million to $74 million. The listing gave HiSoft access to public equity markets and increased its visibility among international technology-outsourcing companies. It was one of a relatively small group of Chinese companies then listed on NASDAQ. HiSoft’s independent corporate history ended in November 2012, when it merged with VanceInfo, another China-based information-technology outsourcing company. The merger created Pactera, a larger provider with combined international delivery resources and customer relationships. HiSoft consequently became part of the merged organization rather than continuing as a standalone public brand. The available reference material does not identify a continuing independent HiSoft operation after the transaction.

• 2012

  BearingPoint Australia acquired

  [1]HiSoften.wikipedia.org

  HiSoft acquired BearingPoint Australia for an undisclosed amount.

• 2012

  Merged with VanceInfo to create Pactera

  [1]HiSoften.wikipedia.org

  HiSoft merged with VanceInfo in November, ending its independent corporate existence and creating Pactera.

• 2011

  NouvEON Technology Partners acquired

  [1]HiSoften.wikipedia.org

  The company acquired NouvEON Technology Partners in the United States.

• 2010

  NASDAQ initial public offering

  [1]HiSoften.wikipedia.org

  HiSoft completed an initial public offering of American depositary shares on NASDAQ.

• 2004

  International holding company formed

  [1]HiSoften.wikipedia.org

  HiSoft Technology International Limited was formed as a Cayman Islands holding company above the group’s operating units.

• 2002

  Japanese subsidiary established

  [1]HiSoften.wikipedia.org

  HiSoft established Haihui Sci-Tech Japan, later renamed HiSoft Japan, creating an early international operating base.

• 1996

  Company founded as Dalian Haihui Sci-Tech

  [1]HiSoften.wikipedia.org

  The business that became HiSoft was established in Dalian, China, under the name Dalian Haihui Sci-Tech Co., Ltd.

HiSoft positioned itself as an internationally capable, China-based technology outsourcing provider combining Chinese delivery resources with customer-facing operations in Japan, North America, Europe, and other markets. Its principal target customers were large multinational corporations, especially in telecommunications, software, financial services, pharmaceutical, and manufacturing industries.

• IT outsourcing service

  Software development

  HiSoft developed software and business applications for enterprise customers, using delivery teams in China and other operating markets. The service was designed for multinational companies that needed distributed engineering capacity and support for large technology programs.

• IT outsourcing service

  Testing and quality assurance

  The company provided software testing and quality-assurance services as part of its application-services portfolio. These capabilities supported customers across sectors including telecommunications, software, financial services, pharmaceuticals, and manufacturing.

• Software globalization service

  Globalization and localization

  HiSoft helped technology products and applications serve customers in different languages and markets through globalization and localization work. This offering complemented the company’s international customer base and its operations in Japan, North America, Europe, and Asia.

• IT outsourcing service

  Application maintenance

  Application maintenance and related support services formed part of HiSoft’s recurring technology-outsourcing work. The company maintained and supported software environments for enterprise clients alongside development, testing, and implementation activities.

• 2012

  Merger with VanceInfoM&A

  Background

  HiSoft and VanceInfo were both China-based information-technology outsourcing providers with international operations.

  Action taken

  The companies merged in November 2012 to form Pactera.

  Aftermath

  HiSoft ceased to exist as an independent company and its business became part of Pactera.

  Source

• 2010

  Public-market listing through an initial public offeringOther

  Background

  After expanding its international services and customer base, HiSoft pursued access to public equity markets.

  Action taken

  The company issued American depositary shares in an initial public offering on NASDAQ on June 30, 2010.

  Aftermath

  The listing made HiSoft a publicly traded Chinese technology-outsourcing company until its later merger with VanceInfo.

  IPO offering value. $64 million–$74 million (June 30, 2010)

  Source

1. 1HiSoften.wikipedia.org