This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in China from January to June 2018 (1H18). 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 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 1H18, China's GDP grew 6.8% year over year (YoY). The country's economy remained steady, and the tertiary industry (services sector) made great contributions to drive economic transformation. The tertiary industry continued to grow relatively fast during this period, enjoying a 7.6% growth. This has resulted in a stable growth in overall IT services spending.
Project-oriented services — specifically consulting, systems integration (SI), and custom application development (CAD) 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 to overall IT services market growth, mainly helped by the popularity of cloud-related services such as hosted application management, hosting infrastructure services, and IT outsourcing. Meanwhile, the support services market continues to be impacted by sluggish hardware and software product sales.
With the rapid development of cloud services, most industries have entered the large-scale replication stage of private cloud construction. A number of services related to the private cloud, such as consulting, migration, development, and operations, are playing a vital role in its construction. The private cloud services market will maintain robust growth over the next five years. At the same time, managed cloud services have begun to grow at an accelerated rate, with more and more new companies entering the competition.
In general, local service providers such as H3C, Huawei, and Inspur outperformed MNCs due to the implementation of the Secure and Controllable policy, which supports purchasing from local companies. In addition, cloud-based service providers such as 21Vianet and GDS have gained market share due to the rapid development of cloud services and hosting services.
IBM, Inspur Group Co., Ltd., 21Vianet Group, Inc., Huawei Technologies Co., Ltd., Lenovo Group Limited, Sugon Information Industry Co. Ltd., 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