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Market Size and Growth: The China software services market is expected to reach US$72.87 billion in 2023 and US$110.00 billion by 2028, growing at a CAGR of 8.58%. This is driven by increasing digitalization across various industries and government initiatives promoting technological advancements.
Government Procurement: The Chinese government plays a significant role in the software services market through its procurement activities. In 2022, government software procurement reached CN¥1.8 trillion (US$263.3 billion), making it a major source of revenue for the industry.
Main Products and Services: The government primarily procures software services in the following areas:
System integration and application development: This involves building custom software solutions and integrating them with existing systems.
Cloud computing: This includes cloud infrastructure services, platform as a service (PaaS), and software as a service (SaaS).
Security and networking: This encompasses cybersecurity solutions, data protection, and network management.
IT consulting and training: The government seeks professional guidance and workforce development programs for enhancing its IT capabilities.
Top Authorities: The key authorities responsible for software services procurement in China are:
Ministry of Industry and Information Technology (MIIT): oversees IT policy and development.
Ministry of Finance (MOF): manages government budgets and procurement processes.
National Development and Reform Commission (NDRC): plans and implements economic development initiatives.
Top Winners: Major beneficiaries of government software procurement include:
Huawei: a leading provider of IT infrastructure and cloud computing solutions.
Alibaba Cloud: a major player in the cloud computing market.
Inspur: a prominent IT solutions provider specializing in government projects.
China Electronics Technology Group (CETC): a state-owned enterprise offering IT services and products.
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