Abstract
This IDC study provides an overview of the status of the China IT services
market and a forecast for the next five years. It also includes demand-side
analysis, a competitive landscape with top vendors' rankings, as well as a
segment market analysis. The study also provides recommendations for services
providers in each IT services segment.
For outsourcing services, the dilemma in China is that labor costs are low, so
the cost effectiveness of outsourcing, especially by global vendors, is not
apparent. Clients' IT environments are currently very complicated and
non-transparent; this makes it difficult to realize vendors' technical and
managerial expertise. IDC suggests providing consulting services to help
improve the IT operation level first and then using selective outsourcing to
build up trust before outsourcing more. Managed services are also a very smart
way to solve the control preference of clients in China. "In the long run,
utility services will be well received by users due to the significant cost
effectiveness and high expertise which users have difficulty obtaining in an
internal IT department," says Grace Han, senior research manager, Software and
Service, IDC China.
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