Shulou(Shulou.com)11/24 Report--

CTOnews.com news on January 4, IDC's latest "China IT Service Market (first half of 2022) tracking" report shows that the overall size of China's IT service market reached $17.66 billion (about 114.11 billion yuan) in the first half of 2022, a year-on-year growth slightly lower than the previous forecast, 4.5%. Among them, the project service market grew by 4.5% over the same period last year, the management service market grew by 6.8%, and the support service market grew by 1.9%.

The IT service market defined by IDC consists of three first-level sub-markets: project services, management services and support services. The three primary markets are subdivided into 12 secondary markets-project services include IT consulting, system integration, network consulting and integration, and customized software development; management services include application management, managed application management, network and terminal management, IT outsourcing and managed infrastructure; supporting services include hardware deployment and support, software deployment and support, and IT education and training.

CTOnews.com learned that among the key vendors in China's IT service market in the first half of 2022, the three major operators accounted for 72.4%, Huawei 3.8%, H3C 3.1%, Lenovo 3.1%, IBM 2.8%, Shenzhou Information 2.4%, and others 12.4%.

In the first half of 2022, driven by multiple unstable factors, the year-on-year growth of China's IT service market was under pressure and showed a significant slowing trend:

The recovery of project services is blocked, but the potential is still there: unstable factors such as macroeconomic downturn and repeated epidemics cause some enterprises to reduce their IT investment and business innovation to deal with core issues such as operating risks, rising costs and declining revenue. In the first half of the year, there were frequent delays or suspensions of IT service projects (such as IT Consulting) that relied on on-site and local delivery. But at the same time, service providers are still strengthening their consulting capacity and setting up independent consulting teams to seek to draw follow-up projects / bidding plans through IT consulting projects. In addition, the maturity of cloud native technologies such as Serverless and IaC drives enterprises to invest in cloud-related services and apply modernization to seek their own digital transformation. And in 2022, as more and more governments and large enterprises begin to build and transform mature cloud / hybrid infrastructure, fast links and low-latency requirements between different infrastructure and systems are creating opportunities for the network consulting and integration market.

The growth rate of management services is relatively stable: with the operation and maintenance management of the huge stock IT infrastructure / system, the demand for management services will remain stable in the next 3-5 years. Among them, operators and data center service providers are the main growth points of the hosting infrastructure market (especially the host hosting market), and operators are constantly expanding their data center management service business. In addition, although the growth of the public cloud market slowed down over the same period, operators maintained a high investment in their own public cloud resources in the first half of the year. In the IT outsourcing market, the complexity of the new IT infrastructure of enterprises is increasing, which makes service providers need to transition from providing low-level operation and maintenance and management services to providing a set of multi-cloud / multi-infrastructure management solutions to help enterprises make efficient use of cloud resources and reduce use costs.

The share of supporting services is still declining: in recent years, the emergence of cloud projects and increased corporate acceptance of the SaaS service model are squeezing the growth rate of localized software deployment. In addition, the growth of the Internet and other industries gradually reached a bottleneck in 2022, resulting in a decline in the purchase of related hardware such as servers / storage and commercial computers, and the growth rate of related services was lower than expected. At the same time, Internet companies have stronger technical capabilities, more sensitive to costs, and do not rely on the original extended warranty support services, which affect the development of hardware deployment and support market. In this regard, some hardware manufacturers have launched support services for customers' specific needs (such as zero-carbon services-green management / disposal of hardware assets) to help customers better use and manage hardware products. In addition, with the popularization of new technology and the deep interlacing of the relationship between enterprise business and IT system, attention has been paid to IT education and training. While developing their own service strength, service providers also begin to provide talent education and training. In addition, the complexity of the current IT system and the high requirements of enterprises for their own IT personnel strength will also promote the development of IT education and training service market.

IDC analysts say that as companies actively adopt cloud computing and related emerging technologies, the demand for IT services has shifted from simply maintaining the IT environment to supporting enterprise business growth. New requirements include seeking to develop and optimize standardized workflows and using more automated testing to speed up integration and acceptance. Today, not only finance, telecommunications, government and other hot industries continue to promote digital transformation, large state-owned enterprises, manufacturing, medical and other traditional industries are also paying attention to and actively promoting the landing of modern IT projects. Therefore, service providers should not only strengthen their service capacity, but also deeply cultivate the potential of the industry to meet the IT scene needs of customers. In addition, managed service providers need to shift from supporting customer IT requirements, user management and business processes to managing complex service and technology environments. The adoption of the new IT strategy will continue to stimulate not only the project-oriented service market, but also the management and support service market, thus promoting the development of the whole IT service market.

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