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Its image tarnished, US firm works for atonement
Last Updated(Beijing Time):2006-11-15 11:45
Computer Associates, a United States-based software provider, said it will improve its corporate image and increase investment in China after its former chief was involved in financial fraud.

CA's revenue in China, mainly from the telecommunications, banking and government sectors, will reach US$88 million in 2009, spurred by an annual growth rate of "at least 25 percent," said Jim Fisher, CA's marketing vice president for the Asia-Pacific and Japan region.

China is a critical market for the company to achieve "double digit" growth over the long term, given that growth in other regions is slowing, Fisher said during an expo in Shanghai yesterday.

CA will find 18 strategic partners in China within next three years, including Digital China and Deloitte, according to Agnes Wan, a CA marketing director.

"They will have strong financial backgrounds, IT distribution channels or regional influences so they won't overlap," Wan said.

Millions of small and medium-sized enterprises in China are potential clients, Fisher said.

IT investment

IT system management software revenue will hit 1.53 billion yuan (US$191 million) this year compared with 1.38 billion yuan in 2005, according to CCW Research, a Beijing-based IT research firm.

"The market growth was fueled by the government's increased investment in IT infrastructure and demand from SME firms," CCW said in a report.

On Thursday, CA's former chief executive officer, Sanjay Kumar, received a 12-year prison sentence and an US$8 million fine because of securities fraud and obstruction of justice for his role in the company's US$2.2 billion in revenue swapping with another firm in 1999 and 2000.

The company plans to increase research and development investment, and "unify and simplify" products for Chinese clients to lift CA's image, according to Wan, who declined to reveal detailed investment figures.

CA has a research center in Beijing with 200 employees.

Meanwhile, CA said it will work to retain big clients, including Air China and China Construction Bank, to enhance its reputation.

Source:Shanghai Daily 
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