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Sedate rise in IT and software revenue

THE revenue of China's software and information technology services will expand 22 percent to 25 percent this year, almost half of the growth rate last year, due to the global financial crisis, the top industry regulator said yesterday.

The outsourcing income of the finance and manufacturing sectors will drop but telecommunications and government outsourcing services will see revenue surge, said the Ministry of Industry and Information Technology.

"The (crisis) influence has deepened. It is hitting the software industry as many manufacturers in the coastal regions have shut down," the ministry said in a statement on the Website.

Last year, China's software and IT services revenue totaled 156.7 billion yuan (US$23 billion), a jump of 41.2 percent year on year, the ministry said.

The global spending on IT will grow less than 3 percent, lower than the previous forecast of 5 to 6 percent, according to United States-based IT research firms Gartner Inc and IDC Corp.

The home-grown software industry has a huge domestic market to fall back on. The industry is fueled by the next-generation mobile communication services and the state's stimulus package.

In January, China issued 3G permits to three telecommunications firms, which allows users to enjoy high-speed data services on handsets. The investment on 3G, set to hit 200 billion yuan, includes building software infrastructure, industry officials said.

China plans to spend 15 billion yuan on upgrading industrial technology under its 4-trillion-yuan package to stimulate the economy.



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