Driven by the growth in IT investment and of China's information sector, revenue for the IT Services industry has been growing at an annualized rate of 6.3% over the past five years. In 2014, revenue is expected to total $111.7 billion, up 7.1% from 2013.
Although the IT services industry in China has a short history, it has been expanding quickly. However, it still only absorbs about 20.0% of China's total IT investment; in most developed countries the share is about 40.0%. That means there remains significant growth potential.
The industry's outsourcing and offshoring service segment experienced the fastest growth in the past five years, bolstered by strong government support.
System integration services are the largest sub-segment within the professional services segment, generating an estimated 27.0% of industry revenue in 2014. Due to China's rapid economic development, system integration services grew rapidly in the years prior to 2005. Since 2006, however, growth has slowed due to declining prices and weaker demand from the financial sector.
Network services are offered to enterprises of various sizes and include setting up local networks, website design and e-mail services. Demand for network services from small and medium enterprises has been steadily increasing in the past five years. Revenue in this segment accounts for about 30.0% of industry revenue