Huawei form new joint venture to tap into domestic IT service industry

A Huawei logo is seen above the company's exhibition pavilion during the CommunicAsia information and communications technology trade show in Singapore in this June 19, 2012 file photograph.(filephoto: Xinhua)

Chinese telecommunication giant Huawei annouced its jointed venture with IT service provider, an effort to develop its strength in the fast expanding IT service industry in China.

The joint venture between Huawei and a China-based IT service provider iSoftStone Holdings Limited ( NYSE:ISS), would provide Huawei with a long-term competence in the IT solution industry, said T.W. Liu, Chairman and CEO of the iSoftStone.

Upon establishment, the new company is expected to reach around 20,000 employees by 2015 and aims to secure more market share by then.

Liu said, “Thanks to the impressive growth of the information & communications technology industry in the region, IT services in China have continued to grow rapidly amid slower growth or reductions in IT expenditures in other parts of the world.

Huawei owns 25% shares in the new company, which was registered with a capital of 100 million RMB in Sep, 2012.