A Shanghai, China-based enterprise business software firm with North American headquarters in Atlanta is aggressively expanding its footprint in its home country.

CDC Software, a subsidiary of Hong Kong-based CDC Corp., has reached deals with seven companies to resell its products in China as part of an effort to make the Asian nation its second-largest global market.  

CDC Software's Atlanta office manages North American sales, which currently account for half of its revenues. China accounts for just 10 percent of sales, while as a unit, Europe, the Middle East and Africa make up 30 percent.

"The seven new CDC Software partners in China join other CDC partners in China to give us now nine partners in this territory.  We expect to double these numbers shortly, and recruitment efforts continue to be strong globally," said Monish Bahl, the company's head of investor relations. 

A proportion of CDC's expansion plan depends on these contracting companies, which help introduce the company's products into new markets and industry sectors.  

CDC Software makes programs that help businesses run their operations more efficiently. Its enterprise resource planning programs manage financial, manufacturing, purchasing and distribution issues. Supply chain programs keep track of the flow of goods. Other solutions streamline customer relationships and manage human resource issues like payroll and benefits. 

The China resellers will help the company make inroads into the jewelry and fashion industries in southern China, chemical plants in the east, pharmaceuticals in the south and west, and general manufacturers all over the country.

They are part of a worldwide network of more than 1,100 CDC Software authorized dealers, which participate in the company's Global Partner Program. 

Through the program, the company recruits, trains and funds local companies, which sell CDC's products on their own as well as through joint efforts with CDC's direct sales staff.  About 23 percent of its licensed software sales globally are achieved through this model, Mr. Bahl said. 

"The program offers the benefits of training, product support, sales methodologies, marketing campaigns and funding in the form of loans, marketing support, or development efforts," he added. 

The contractors are generally paid on commissions, but the company has enacted a franchise program in emerging markets whereby CDC Software makes an initial investment that the partner pays back on a schedule, Mr. Bahl said. 

In addition to its franchising methods, CDC Software has also started growing in China through acquisitions. 

"We recently completed an acquisition of WKD Solutions, known as Categoric, a provider of supply chain event management software," Mr. Bahl said. "We look for technology to augment or fill any gaps in our software portfolio." 

The firm last month agreed to acquire a 51 percent stake in Beijing-based Hejia Software Technology Co. Ltd., and announced Oct. 5 the pending purchase of another business software solutions provider, according to CDC Software news releases.

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