IT Services - China

China

The IT Services market in China is expected to achieve a revenue of €71.61bn by 2024.
This market is largely dominated by IT Outsourcing, which is projected to reach a market volume of €26.64bn in the same year.
The revenue is anticipated to grow at an annual rate of 6.63% (CAGR 2024-2029), resulting in a market volume of €98.73bn by 2029.
The average Spend per Employee in the IT Services market is estimated to be €90.98 in 2024.
In terms of global comparison, United States is expected to generate the highest revenue, reaching €479.00bn in 2024.
China's IT Services market is experiencing rapid growth driven by the country's strong technological infrastructure and government support for digital transformation.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Mercado

Región

Comparación de regiones

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Analyst Opinion

China, a country with the world's largest population, has been experiencing a rapid growth in the IT services market.

Customer preferences: The Chinese market has a strong preference for IT services that are cost-effective and provide high-quality solutions. Customers in China are more inclined towards customized IT solutions that cater to their specific needs. They also prefer IT services that are easily accessible and provide quick responses to their queries.

Trends in the market: One of the significant trends in the IT services market in China is the increasing adoption of cloud computing services. With the growing demand for data storage and security, Chinese businesses are turning towards cloud-based solutions. The market has also witnessed a surge in the demand for big data analytics and artificial intelligence (AI) services. As the Chinese government continues to promote the development of AI, the market for AI services is expected to grow further. Another trend in the market is the rise of e-commerce platforms, which has led to an increase in demand for IT services that support online transactions and payment systems.

Local special circumstances: The Chinese IT services market is unique due to the presence of large domestic players such as Huawei, Alibaba, and Tencent. These companies have a significant influence on the market and have been investing heavily in research and development to create innovative IT solutions. Additionally, the Chinese government has been promoting the development of the IT industry through various initiatives, including tax incentives and subsidies.

Underlying macroeconomic factors: The Chinese economy has been growing at a steady pace, which has led to an increase in the demand for IT services. The country's large population and growing middle class have also contributed to the growth of the market. Furthermore, the Chinese government's focus on innovation and technology has led to increased investment in the IT industry. However, the market is also facing challenges such as increasing competition and cybersecurity concerns. In conclusion, the IT services market in China is experiencing significant growth due to the increasing demand for cloud computing, big data analytics, and e-commerce platforms. The market is unique due to the presence of large domestic players and the government's focus on promoting innovation and technology. However, the market is also facing challenges such as increasing competition and cybersecurity concerns.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.