Cisco Systems, the world's largest network equipment provider,
announced in Beijing Wednesday the launch of an IT services company
in China.
"This is another long-term investment made by Cisco since its
entry into China in 1994," said Joe Pinto, senior vice-president of
Cisco's technical support department, at the launch in Beijing.
The US company set up a research and development center in
Shanghai last October with the aim of increasing market share in
China.
US market investigation company, International Data Corporation,
predicted that up until 2009 China's IT services market would grow
at 18.5 percent annually to 11.6 billion US dollars. China had
become one of Cisco's key markets with a high growth rate and the
new company would meet growing customer demand, Pinto said.
The new company is based on the former service department of
Cisco China and would mainly provide consulting services and
technical support, he explained?
The level of investment in the new venture was not disclosed but
general manger, James Kuo, said further funds would go into
services in China. "We expect double service revenue for Cisco in
the coming two or three years," said Kuo.
Cisco has five other services companies in the US, Japan,
Australia, Canada and India.
The companies were all set up in areas with great potential for IT
services growth, said Pinto.
Services accounted for 17 percent of Cisco's global sales
revenue of US$24.8 billion in the 2005 fiscal year.
(Xinhua News Agency May 11, 2006)