China Software, IT Services Industry to Enjoy Impressive Growth in 2012
China’s software and Information Technology (IT) services industry will continue to enjoy double-digit growth figures on a year-to-year basis, with rising global and domestic demand for software exports and outsourcing services, reports the Ministry of Industry and Information Technology (MIIT).
Traditionally, China has been widely known for its low cost manufacturing facilities. Competition among service providers has turned China into a high technology service-based economy, which has fueled growth in the domestic software market in recent years. Government support, easy access to IT infrastructure, domestic demand and availability of low-cost human resources are supporting factors that encourage both local and foreign software players to enter China’s software industry.
According to Xinhua, the IT services sector grew 32.4% now at 1.84 trillion yuan (US$ 292.23 billion) while software exports increased 18.5% from the previous year. With these, the nation’s total exports have reached US$ 30.4 billion. In a report released at a forum held in the northeastern province of Heilongjiang, the outsourcing sector saw growth of 39.5% from last year to attain 383.5 billion yuan (US$ 60.9 billion) in 2011, while software exports rose by 40.3% to US$ 5.9 billion.
The government’s continuous efforts in the form of IT investment, infrastructure improvements, establishment of software areas, and provision of quick approvals to secure national and international investments have helped drive growth in the software industry. The industry’s potential is not only limited to domestic consumption, as foreign majors are also eying the industry as viable software outsourcing destination.
Furthermore, growth in IT spending among other industrial sectors such as government, banking and manufacturing, has helped the industry to flourish, and propels the domestic software industry over the forecast period. Considering these factors, the software industry is projected to keep its growth momentum through this year.