Nation's IT services sector nearing 'golden era'

Despite tremendous growth potential in China's IT services, the industry has yet to fully take advantage of the global resources, a recent report has found.

The conclusion was made in a joint white paper entitled IT Services Industry in China, released by CCID Consulting Co Ltd (CCID) and Microsoft Customer Service and Support, Asia-Pacific & Greater China Region (APGC CSS).

The white paper said IT services in China have shifted to personalization, and are now entering a new, performance-oriented phase and heading for further standardization.

IT services involve IT consulting, IT systems integration, related training, IT system management outsourcing, as well as IT products support and maintenance.

Due to rapid economic development and a booming IT industry in China, the IT services industry has expanded to a market with an annual scale in the scores of billion yuan.

During the first half of 2007, the nation's IT services industry revenue amounted to 31.14 billion yuan, up 14.1 percent from a year earlier.

"China's IT services industry is marching into a golden era within the next five years, capturing an annual revenue of 132 billion yuan by 2010," said Chen Jianjun, deputy secretary general of the China Federation of IT Promotion.

Last year, the industry structure began shifting, with stable growth of system integration, while demands on outsourcing consultancy and training services flourished.

The growth of governmental demands on IT services remains robust. Services for small- and medium-sized enterprises have accelerated. And the number of household clients is increasing.

Many key industries, such as finance, telecommunications, manufacturing and retailing, have become the crucial drivers for China's booming IT services industry.

Chen believes the strengthened intellectual rights protection, resulting in a fairer and sounder market environment, also stimulate the healthy development of the sector.

The white paper also indicated that globalization provides a wealth of opportunities for China's IT services industry.

To benefit from these opportunities, players in the industry should adopt the ability to deliver superior customer services and to fulfill the IT needs of a globally integrated economy, which means they must provide tailored services with world-class quality to clients based on an international aspect.

Along with globalization and IT services economization, the industry's technology trends involve further standardization, increased information safety and more personalized and tailored solutions.

To meet the demands of these trends, the industry's most challenging issue is finding talent, agreed Li Jun, CEO of CCID, and Wing-Dar Ker, general manager of APGC CSS, Microsoft.

An online survey by ChinaHR.com, one of the leading job consulting websites in China, showed that among the top 10 most promising jobs in China, IT services ranked fourth. The survey was carried out over the last year.

Transnational companies are adjusting their global business allocation and moving the intellectually intensive services segment from home markets to the developing nations, including China, where costs are relatively low.

CCID is the first Chinese consulting firm listed on the Growth Enterprise Market (GEM) of the Hong Kong stock exchange and is directly affiliated with the China Center for Information Industry Development.

Being one of Microsoft's five technical support centers in the world, Microsoft's APGC CSS is the first global IT service center established in China by a Fortune 500 company.

(China Daily 12/21/2007 page15)