A recent report by CCID Consulting suggests China’s IT services market is slowing down somewhat.
‘Slower growth indicates the industry’s upgrade,’ said Jian Cang, an analyst with CCID, a leading Chinese IT research institute.
China’s IT services market reached RMB59.5 billion in 2006, a 17.8% increase from the year before, but, according to the report, the rate of growth was slower than in 2005. And CCID expects the growth rate to be even slower in 2007.
What apparently is doing the damage is the lower growth in the system integration services sector, which accounts for 30% of China’s IT services.
The institute forecasts a 25% growth of IT outsourcing development, and 20% percent growth of the IT education and training market.
In the vertical market, large businesses remain the biggest market for IT services, while the government market is growing at a fast rate.
The IT service market for small and medium-sized businesses (SMBs) is growing relatively slower, but in the report Jian Cang said SMBs will place an increased demand on IT services in the years ahead. He said, ‘IT service providers will transfer their focus from the saturated large enterprises market to explore the SMB market.’
Source: China View
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