Information and financial service provider Reuters has opened a wholly-owned company in Beijing's Zhongguancun Software Park to specialize in outsourcing services for products like its 3000Xtra desktop terminal.
Tom Glocer, CEO of Reuters, told local media that his company grew vigorously in China in the first half of this year with up to 18% growth.
Though the company has plowed US$18 million into this new development center, recent regulations in China may harm Reuter's services in the near term. Earlier this year, Chinese government officials announced new rules that limited the amount and type of foreign financial news coming into China. However, because the Chinese government has also listed software outsourcing as an important part of its future growth in exports, Reuters has received preferential policies from the Chinese government in arranging its new business.
Although Reuters is well known as a news agency, news service only accounts for about 5% of the company's revenue. Now the company mainly focuses on information transmission and value added services for the majority of its income.