IT services sector in recruitment drive amid improving prospects
Hong Kong's information technology services sector is stepping up efforts to hire new staff, amid improved economic prospects in the mainland and other markets, according to a government survey.
The expansion was expected to help support a proposed cross-border initiative between groups of technology services providers in Guangdong and Hong Kong to develop their IT outsourcing business, senior executives at the Hong Kong Productivity Council said.
Yung Kai-tai, general manager for IT industry development at the council, said local IT services players had made provisions to increase their manpower base up to 5.2 per cent in Hong Kong, 8.8 per cent in the mainland and 7.9 per cent in overseas markets this year.
Respondents to the council's survey conducted last quarter included small and medium-sized enterprises involved in custom software development and maintenance, IT consultancy, data processing, and engineering and technical services for computer or communications systems.
The council was commissioned by the Office of the Government Chief Information Officer, the agency overseeing IT policy and development in Hong Kong.
Fritz Chiu, the council's principal consultant for IT industry development, said improved economic prospects had spurred the local IT services sector to increase their workforce to about 20,000, about the same number the industry employed during the height of the dotcom boom in 1999 and 2000.
'The local IT services sector is generally optimistic about opportunities in the mainland with 72.4 per cent [of respondents] indicating interest in developing this market,' he said. Market liberalisation measures under the Closer Economic Partnership Arrangement between the mainland and Hong Kong, and increased IT demand from mainland firms 'are some of the contributing factors for this optimism'.
Enterprise spending on IT services in the mainland will reach US$5.92 billion this year, up from an estimated US$5.16 billion last year, researcher Gartner has predicted. It forecast enterprise investment on IT services in Hong Kong this year to remain about the same as last year, at US$1.4 billion.
The council's report estimated the average revenue growth among local IT services providers last year was 11.6 per cent in Hong Kong, 10.8 per cent in the mainland and 10.1 per cent in overseas markets. It also found 21.1 per cent of respondents were interested in expanding their IT outsourcing activities.
Mr Yung said the council would help local IT services players form an industry alliance this June, with an eye to establish a strategic co-operation with the Guangdong Software Outsourcing Council.
Since it was formed in May last year, the Guangdong council has moved beyond basic trade promotions, setting up a clutch of joint ventures that have secured software outsourcing projects with various multinational companies.
