The IT consulting segment grew the fastest due to expanding demand from China's telecommunications sector and government institutions.
San Francisco, CA (PRWEB) October 21, 2012
The IT Services industry in China has developed rapidly due to growing domestic demand and government support. In the five years through 2012, industry revenue has been growing at an annualized rate of 7.1% to an estimated $92.1 billion, says IBISWorld.
The IT services industry in China is relatively young and there is still significant growth potential. The IT consulting services segment experienced the fastest growth in the past five years due to expanding demand from China's telecommunications sector and government institutions. Driven by increasing computer usage and upgrade levels in China, demand for systems integration services has also grown substantially. In addition, the Chinese government has been supporting the development of IT service outsourcing and offshoring.
This industry has a low industry concentration level, with the four largest firms, Digital China, IBM Solution & Services, Hewlett-Packard, and Neusoft, contributing less than a quarter of industry revenue.
Although there are some large enterprises in the IT Services industry in China, most local markets are serviced by small local enterprises that provide low-cost and generic IT services. The industry concentration level is expected to increase slightly as large enterprises expand and acquire smaller firms to gain market share in the growing small- and medium-sized business market segment. In addition, IBISWorld anticipates that large enterprises with comprehensive service abilities and competitive technological advantages will continue exploring foreign markets, especially in the United States and Europe.
For more information, visit IBISWorld’s IT Services in China industry report page.
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IBISWorld industry Report Key Topics
The IT Services industry in China comprises establishments that provide information technology (IT) services to enterprises in all industries. IT services include maintenance and support services, professional services (e.g. consulting, systems integration, outsourcing, education and training) and network services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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