The fast-growing industry continues to have strong growth potential.
San Francisco, CA (PRWEB) May 25, 2013
The IT Services industry in China has developed rapidly in the past five years due to growing domestic demand and government support. Industry revenue is expected to total $100.4 billion in 2013, growing at an annualized rate of 6.8% over the past five years, says IBISWorld.
Although the IT services industry in China has a short history, it has been expanding quickly. However, it still only absorbs about 20.0% of China's total IT investment, a lower proportion than in most developed countries (about 40.0%). That means there is still significant growth potential, says IBISWorld.
The IT service outsourcing and offshoring services segment experienced the fastest growth in the past five years. Driven by increasing computer usage and upgrade levels in China, demand for systems integration services has also grown substantially.
This industry has a low industry concentration level, with the four largest firms – Digital China, IBM, Hewlett-Packard, and Neusoft – contributing 18.5% of industry revenue in 2013. About 9,800 enterprises operate in this industry and most of these are small or medium in size. Local markets are generally served by small local enterprises that provide low-cost and generic IT services.
IBISWorld anticipates that the industry concentration level will increase, as large IT services firms acquire smaller local providers to gain market share in the growing small- and medium-sized business market segment. In addition, 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 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.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.