This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in the People's Republic of China (PRC) from July to December 2018 (2H18). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented services, managed services, and support services) as well as the key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of global and local IT services providers in the market.
The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research that covers 14 foundation markets across 14 Asia/Pacific countries.
In 2H18, China’s gross domestic product (GDP) grew by 6.4% year over year, while 2018’s full year GDP growth was 6.6%. The country’s economic growth continued its relatively stable trajectory, with the tertiary industry (services sector) being an important driver of economic transformation. The tertiary industry continued to grow strongly in 2018, enjoying a 7.7% growth compared to the previous year. This has resulted in resilient growth in overall IT services spending.
Project-oriented services, specifically consulting, systems integration, and custom application development services were mainly driven by the demand for emerging technologies such as cloud, mobility, and big data. The managed services market showed the highest contribution toward the overall IT services market growth, mainly due to the popularity of cloud-related services such as hosted application management, hosting infrastructure services and IT outsourcing. Meanwhile, the support services market has been continuously impacted by sluggish hardware and software product sales.
Most industries have entered the large-scale replication stage of private cloud adoption. Services related to private cloud such as consulting, migration, development, and operations, are playing a vital role in driving growth of the private cloud market. The private cloud services market is expected to grow healthily over the next five years. At the same time, managed cloud services have begun to grow rapidly as well, in the context of new vendors entering the managed cloud market.
Local service providers such as Huawei, Lenovo, Lenovo-Sunny, and Beyondsoft have improved drastically with the implementation of the Secure and Controllable policy that promotes purchasing services from local companies. In addition, cloud-based service providers, such as 21Vianet and GDS have gained market share due to the rapid growth of cloud services and hosting services. Traditional global service providers are looking at increasing their competitivity in the IT services market. Firstly, they are actively seeking opportunities to form partnerships with local service providers; in addition, they are providing Chinese enterprises with more in-depth digital transformation services in terms of advanced technology and management experience.
IBM, Inspur Group Co., Ltd., 21Vianet Group, Inc., Huawei Technologies Co., Ltd., Lenovo Group Limited, New H3C Technologies Co., Ltd., GDS Holdings Ltd, AsiaInfo, Inc., Digital China Information Service Company Ltd., DXC Technology Co.
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Network and desktop outsourcing services, Systems integration services