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 2016 (2H16). It covers the market size movements and growth trends in each of the macromarkets (i.e., project oriented, outsourcing, and support and training 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 large 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, which covers 14 foundation markets across 14 Asia/Pacific countries.
China’s gross domestic product (GDP) grew by 6.7% year over year (YoY) in 3Q16 and 6.8% in 4Q16. China’s economy has shifted from high-speed development into mid-speed development. The industrial structure continued to be optimized, and the tertiary industry accounted for an increasing proportion in the national economy. The local policies, including Made in China 2025, Internet Plus, and the mass entrepreneurship and innovation strategy, continued to stimulate the development of high-tech services and encouraged the demand for advanced technologies. As part of the high-tech services, the IT services market has sustained a good growth momentum.
The outsourcing services market achieved double-digit growth because of strong domestic outsourcing demand and an increased demand for cloud services. Both the project-oriented services and support and training services markets have been growing steadily thanks to an increased demand for IT infrastructure upgrade among enterprises. The digital transformation of enterprises has created greater opportunities for IT SPs, especially for system integrators (SI), and ISVs. The adoption of cloud, big data, mobility, and social technology in digital transformation is increasing. Hence, most services vendors have been actively developing their infrastructure capacity around 3rd Platform technologies.
The government, healthcare, and retail sectors have seen higher investments in IT services in 2H16. The government has further promoted the construction of new Smart City and smart government affairs in its 13th Five-Year Plan. Following the healthcare reform, Chinese public hospitals have embraced IT, whereas the retail industry has actively developed a viable retail channel by leveraging on big data, mobility, and other new technologies.
IBM, Oracle Corporation, Digital China Holdings Limited, 21Vianet Group, Inc., Huawei Technologies Co., Ltd., Cisco Systems, Inc., Hewlett Packard Enterprise, Lenovo Group Limited, GDS Holdings Ltd, AsiaInfo, Inc., Pactera Technology International Ltd.
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