China IT Services Market Report 2017

IT services is a prominent part of the overall service industry in China. The number of establishments in the IT services market grew significantly in China in recent years. The number of legal entities in the information transmission, software and IT sector doubled during 2010-2015. It increased from around 192,000 in 2010 to around 379,000 in 2015.

Internet penetration increased significantly in China in recent years. It increased from over 34% in 2010 to over 52% in 2016. Chinese internet users account for more than one-fifth of the world’s internet users. According to the World Bank, on an average a Chinese internet user spends around 3.4 hours/day online through laptops/desktops and spends about 2.5 hours/day accessing the internet through mobile. According to China’s National Bureau of Statistics, its mobile internet user population was about 1 billion by the end of 2015.

The Chinese IT services market is the second largest in the world followed by the USA’s. It currently has more than a one-tenth share in the global IT services market. The market value of IT services account for one-third of the overall IT market in China. The IT services market grew developed rapidly in recent years. Growth is primarily driven by high investment, government support and growing demand for internet-based IT services, such as mobile apps, e-commerce, online gaming and cloud computing.

Investment in IT services in China is growing. Key technology companies are investing heavily in IT services. For instance, Chinese Internet company Tencent Holdings Ltd. has revealed a plan to invest over $1.57 billion over the next five years in its cloud-computing business. The e-commerce key player, Alibaba announced plans to invest $1 billion in cloud computing globally.

1. Information Technology Services Market Characteristics 10
2. China’s Information Technology Services Market 11
2.1. China’s Information Technology Services Market 11
2.1.1. China’s Information Technology Services Market Overview 11
2.1.2. China’s Information Technology Services Historic Market, 2012- 2016 13
2.1.3. China’s Information Technology Services Forecast Market, 2016- 2020 14
2.1.4. China Market Size By Segment 15
Hardware Support Services 15
Software and BPO Services 15
Cloud Services 16
2.1.5. China’s Information Technology Services Market, Historic and Forecast, Split By Segment, 2012-2020 16
Software and BPO Services 16
Cloud Services 16
Hardware Support Services 16
2.1.6. China Per Capita Average Information Technology Services Expenditure Versus Internet Penetration, 2012-2020 17
2.1.7. China’s Information Technology Services Market Size Versus Internet Hosts, 2012-2020 18
3. Information Technology Services Market Global Context 19
3.1. Historic Market Growth 19
Drivers of the Market 20
Emerging Markets Growth 20
Technology Development 20
B2B & B2C Mobility 20
High Valuations of Information Technology Companies 20
Restraints on the Market 20
Multinational Operations Difficulties 20
High R&D Expenditure 20
Forecast Market Growth 21
Drivers of the Market 21
Economic Growth 21
Smart Cities 22
Government Initiatives 22
Internet of Things (IoT) 22
Digital Advertising Revenues Increasing 22
Restraints on the Market 22
Interest Rate Increases 22
Infrastructural Barriers 22
Reduction in Free Trade 23
4. Porters Five Forces Model 24
Bargaining Power of Buyers 24
Bargaining Power of Suppliers 25
Threat of New Entrants 25
Threat of Substitutes 25
Industry Competition 25
5. PESTLE Analysis 26
Political 27
Economic 27
Technological 28
Environmental 28
Social 28
Legal 29
6. Information Technology Services Market Segmentation 30
6.1. Global Segmentation 30
Hardware Support Services 31
Software and BPO Services 31
Cloud Services 31
Global Information Technology Services Market, Historic and Forecast, Split By Segment, 2012-2020 32
Cloud Services 32
Software and BPO Services 32
Hardware Support Services 32
6.2. Hardware Support Services 33
6.2.1. Market Characteristics 33
6.2.2. Market Trends And Strategies 34
Software Products Integration 34
Growing Demand For Cloud Data Recovery 34
Software Installations Automation 34
Single to Multiple Services Shift 34
6.3. Software And BPO Services 36
6.3.1. Market Characteristics 36
6.3.2. Market Trends And Strategies 36
Cloud/Software As A Service (Saas) 36
Virtualization 37
Data Analytics For Gaining Insights 37
Software Artificial Intelligence (AI) and Automation 37
Robotics In Business Process Outsourcing 37
ITIL/ISO Certifications In The IT Industry 37
6.4. Cloud Services 38
6.4.1. Market Characteristics 38
6.4.2. Market Trends And Strategies 39
Growing Demand of Hybrid Cloud 39
Faster Data Processing 39
Cloud As A Service 40
Green Data Centers 40
7. Information Technology Services Market Regional And Country Analysis 41
7.1. Global Information Technology Services Market, 2016, By Region 41
7.2. Global Information Technology Services Market, 2012- 2020, Historic and Forecast, By Region 43
7.3. Information Technology Services Market, 2016, By Country 45
7.4. Information Technology Services Market, 2012- 2020, Historic and Forecast, By Country 47
8. Global Information Technology Services Market Comparison with Macro Economic Factors 49
8.1. Information Technology Services Market Size, Percentage Of GDP, Global 49
8.2. Per Capita Average Information Technology Services Expenditure, Global 50
9. Information Technology Services Market Comparison With Macro Economic Factors Across Countries 51
9.1. Information Technology Services Market Size, Percentage Of GDP, By Country 51
9.2. Per Capita Average Information Technology Services Expenditure, By Country 52
9.3. Per Household Average Information Technology Services Expenditure, By Country 53
10. Information Technology Services Indicators Comparison 55
10.1. Internet Penetration, By Country, 2016 55
10.2. Per Capita Information Technology Services Expenditure Versus Internet Penetration, By Country, 2016 57
10.3. Internet Hosts, By Country, 2016 59
10.4. Information Technology Services Market Size Versus Internet Hosts, By Country, 2016 61
10.5. Number Of Registered Domains, By Country, 2016, Millions 63
10.6 Number Of Registered Businesses, By Country, 2016, Millions 65
10.7 Average Spending on Information Technology Services By Registered Businesses, By Country, 2016 67
11. Information Technology Services Market Competitive Landscape 69
11.1 Company Profiles 70
11.2 IBM 70
11.2.1 Overview 70
11.2.2 Products And Services 70
11.2.3 Strategy 71
11.2.4 Financial Performance 71
11.3 Accenture 72
11.3.1 Overview 72
11.3.2 Products And Services 72
11.3.3 Strategy 73
11.3.4 Financial Performance 74
11.4 HPE 75
11.4.1 Overview 75
11.4.2 Products And Services 75
11.4.3 Strategy 75
11.4.4 Financial Performance 76
11.5 Microsoft 77
11.5.1 Overview 77
11.5.2 Products And Services 77
11.5.3 Strategy 77
11.5.4 Financial Performance 78
11.6 SAP 79
11.6.1 Overview 79
11.6.2 Products And Services 79
11.6.3 Strategy 79
11.6.4 Financial Performance 80
11.7 Fujitsu 81
11.7.1 Overview 81
11.7.2 Products And Services 81
11.7.3 Strategy 81
11.7.4 Financial Performance 81
11.8 Tata Consultancy Services 82
11.8.1 Overview 82
11.8.2 Products And Services 83
11.8.3 Strategy 83
11.8.4 Financial Performance 84
11.9 Oracle 84
11.9.1 Overview 84
11.9.2 Products And Services 85
11.9.3 Strategy 85
11.9.4 Financial Performance 86
11.10 NTT Data 86
11.10.1 Overview 86
11.10.2 Products And Services 87
11.10.3 Strategy 87
11.10.4 Financial Performance 88
12. Information Technology Services Market Customer Information 89
Shared Services Survey Findings 89
Reasons For Opening a new SSC and factors for choosing SSC Location In The Future 89
Functions Performed In SSC’s 89
Cloud Computing Has A Significant Presence In The Banking Industry 89
Challenges To Cloud Technology 89
Most Of The Cloud Outages Faced Were Preventable 89
Moving More Workload To Cloud 90
European Companies Outsource More IT services 90
IT Services Budget Allocation 90
13. Key Mergers And Acquisitions In The Information Technology Services Market 91
14. Market Background: Global Information Technology Market 92
14.1 Information Technology Market Characteristics 92
14.2 Information Technology Market Historic Growth 93
Drivers of the Market 94
Technology Development 94
High Valuations on Technology Companies 94
Large Talent Pool in Low Cost Economies 94
Restraints on the Market 94
Software Piracy 94
Multinational Operations 94
14.3 Information Technology Market Forecast Growth 95
Drivers of the Market 96
Economic Growth 96
Smart Cities 96
Government Initiatives 96
Restraints on the Market 96
Impact of E-waste 96
Reduction in Free Trade 96
15. Appendix 97
15.1 NAICS Definitions of Industry Covered in This Report 97
15.1.1 Abbreviations 97
15.1.2 Currencies 97
15.1.3 Research Methodology 98
15.1.4 Research Inquiries 99
15.1.5 The Business Research Company 99
15.1.6 Copyright and Disclaimer 99