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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)