Springboard Research notes that currently, the domestic IT outsourcing market is growing at a faster pace than that of the discrete services segment but it will remain in the early adoption stage over the next five years.

In future, the IT services market in China will continue its rapid growth, driven by government support, private cloud computing and business continuity and disaster recovery (BCDR).

Elaborating more on these factors, Springboard says the Chinese government's stimulus initiatives for the 12th five-year plan aim to expand domestic demand.

The research firm expects most of the investment in BCDR services to come from banking, financial services, and government organisations in PRC.

Commenting on the cloud, Gene Cao, senior analyst, IT services, Springboard Research said: "The emerging trend of adopting virtualisation/private cloud deployment will bring more opportunities to system integration service providers in China."