ManageEngine ramps up investment to tap digital uptrend in China

ManageEngine, the enterprise IT management division of Singapore-based IT management solutions provider Zoho Corp, is ramping up investment in China as it bets on the country's vast market potential, rapid technological advancement and improving business environment to drive its next growth phase, said its senior executives.

Serving more than 90,000 organizations across over 190 countries, the company views China as one of its most strategic growth markets, where it is increasing spending on data centers, local research and development, partnerships and marketing to expand its footprint and capture rising demand for enterprise digital management solutions.

"We are investing a lot in the China market in terms of people, data centers, marketing and partners," said Mathivanan Venkatachalam, vice-president at ManageEngine, adding that the company aims to leverage support for local enterprises and deepen participation in the country's fast-evolving technology ecosystem.

"We want to localize our products for the China market … and increase our market share."

The push underscores the growing confidence the tech provider has in China's long-term economic trajectory, particularly as the country accelerates digital transformation and industrial upgrading.

Founded three decades ago, Zoho has maintained annual growth of over 20 percent without external funding, said Hou Kangning, CEO of Zoho China, adding that China, as the world's second-largest economy, represents a critical pillar in the company's global strategy.

"Our current share in China is still relatively low, and that is both a challenge and a growth opportunity," Hou said. "We see enormous potential here, which is why Zoho is increasing investment here in China."

In 2026 alone, Zoho plans to invest more than 100 million yuan ($14.52 million) in China, covering fields such as data centers, hardware deployment, marketing expansion and the strengthening of localized R&D teams.

ManageEngine currently offers more than 60 IT management and security products globally, many of which are being tailored to meet the specific needs of Chinese enterprises. The company has been in China since the early 2000s and has accumulated thousands of local enterprise users.

"China is not only a manufacturing powerhouse, but it is also growing very fast in the technology space," Venkatachalam said, adding that features developed for Chinese clients are often transferable to other markets, reinforcing the country's role as a global innovation hub.

The company has already built long-term partnerships with leading Chinese technology players, including Huawei, integrating its solutions with Huawei's equipment for over two decades. As Chinese firms expand globally, ManageEngine's products are increasingly deployed alongside them in regions such as the Middle East, Latin America and Europe.

Its client base in China also includes major innovators such as CATL and DJI, reflecting its growing penetration in high-tech and emerging industries like new energy.

Industry data further underscores the scale of opportunity. According to company estimates, China's IT services management market alone could reach about 70 billion yuan over the next five years, while the broader IT management sector may expand to between 200 billion and 300 billion yuan.

"China has evolved from being a manufacturing powerhouse to a leader in intelligent manufacturing and innovation," Hou said. "As Chinese companies go global, we go with them."

To accelerate expansion, ManageEngine is also rolling out a partner-driven strategy, prioritizing key economic clusters such as the Yangtze River Delta region, the Guangdong-Hong Kong-Macao Greater Bay Area, the Beijing-Tianjin-Hebei region and the Chengdu-Chongqing economic circle, before expanding nationwide.

The company also pointed to improvements in China's business environment for foreign companies as a key factor underpinning their long-term commitment, as it has witnessed increasing policy support and engagement from local governments.

"We believe the business environment will continue to improve," Hou said. "That gives us confidence to further increase investment and deepen our presence."

Citing the recently unveiled Government Work Report, Carl Fey, a professor of strategy at BI Norwegian Business School, highlighted China's ongoing efforts to expand high-standard opening-up, which will help create a more favorable business environment for foreign companies.

"China continues to open up more to provide a more open and fairer environment for foreign firms to operate in. The number of industries where foreign firms cannot operate is set to continue to decrease and additional efforts to help foreign firms to import into China such as the China International Import Expo are set to continue," Fey said.