In a sector driven by fast-growth, the emergence of non-traditional competitors and markets challenges established technology business models.

Non-traditional competitors and markets challenges established technology business models

Software and IT services

Software enables the entire networked economy to operate and provides a powerful engine of economic growth. Stimulated by strong demand for Internet-based software and productivity solutions, sales across all segments of the industry from application solutions to development tools to system infrastructure software have experienced rapid growth over recent years.

But market forces are placing increasing pressure on software companies. Merger and acquisition activity, fuelled by the need to rationalise high R&D costs and cope with intense competition, will continue to cause more volatility in this industry. The best positioned companies will profit from new opportunities surfacing in the wake of these changes.

KPMG offers established methodologies and dedicated resources to address the specific audit and taxation needs of software and IT services companies. Our professionals bring seasoned financial and industry perspectives to your business, offering clear and objective advice for the most challenging market issues.



Hong Kong's electronics industry is one of its largest export earners. Many international electronics groups have extensive production facilities in mainland China, while Hong Kong SAR offers a base for management, design, financing and some high value-added production. A growing number of domestic companies in mainland China are competing strongly with the global electronics companies for market share in the local and international markets.

Throughout the technology industry, product lives are becoming shorter as the rate of innovation increases. Technological advantages must be exploited quickly as they will not exist for long and products that a few years ago were status symbols are now commodities (e.g. personal computers, mobile phones). KPMG has a strong position in the marketplace, providing audit, tax and advisory services to many of the world's leading electronics manufacturers and distributors operating in China.

KPMG has experience in dealing with changing market conditions and assisting both multinational clients to operate in mainland China and Chinese clients to gain access to global markets.