This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in China from January to June 2019 (1H19). 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 part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.
In 1H19, China’s economy maintained steady growth, its GDP growing by 6.3% year over year (YoY). One of the main key drivers for this growth is the country’s tertiary industry (services industry), where momentum for overall IT services spending significantly increased, thus boosting YoY growth by 7% in this cycle.
Project-oriented services, the largest IT services primary market, grew by 7.5% YoY, driven by organizations’ heightening interest in adopting emerging technologies for their businesses, such as IoT, AI, and big data, alongside the adoption of cloud. In 1H19, the managed services market grew rapidly by approximately 9.1% YoY, contributed by hosted application management (HAM) and hosting infrastructure services (HIS), where there is rising demand for cloud adoption. Support services increased by 7.0% YoY, supported by hardware deploy and support services (HWDS) and software deploy and support services (SWDS), as organizations sought to equip themselves with the latest software and to shift to cloud services models.
In terms of adopting emerging technologies, different industries have their respective approaches in addressing the digital trends. For example, the financial industry has been focusing more on project-oriented services, as it continuously seeks IT consulting expertise (ITC) and ways to integrate operations (SI) with emerging technologies to remain competitive in the market. Another example is the retail industry, where organizations are showing greater interest in public cloud adoption. As for the government, with the landscape of the services model continuously changing, there is an increase in projects that involve the direct procurement of overall operations models equipped with the latest technologies.
The rise of the digital era has set off new players to join this competitive landscape as well. In recent years, more and more start-ups equipped with emerging technologies have entered the market. With industry applications becoming mature, solutions that center on the latest technologies have been developed, which has enhanced the overall services output in the market. Aside from that, public cloud service providers are also gradually expanding their presence across all industries, strengthening their services offerings and building an ecosystem around their products to enrich multi-scenario delivery capabilities with the help of their partners.
IBM, Inspur Group Co., Ltd., 21Vianet Group, Inc., Huawei Technologies Co., Ltd., Accenture plc, Lenovo Group Limited, New H3C Technologies Co., Ltd., GDS Holdings Ltd, AsiaInfo, Inc., Digital China Information Service Company 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