The growth of IT spending in China will offer substantial opportunities to technology and service providers, with IT spending in that country expected to grow from $301 billion in 2012 to $323 billion in 2013.
That’s part of the projections and insights contained in a recent report by IT research and advisory heavyweight Gartner. The report also says that IT spending by Chinese end users, including consumer and enterprises, grew by close to 14 percent in 2012; and that big data, enterprise mobile application services, PaaS and SaaS are among the technologies which a providing what the company termed a “transformational benefit” to enterprises in China.
The report, entitled “2013 Hype Cycle for ICT in China,” also identified challenges facing China as this growth accelerates. Those challenges primarily included identifying and employing experienced and skilled staff to implement the new business systems.
“The consumerization of IT will continue to have a strong impact in China, which as the world’s largest number of Internet users and mobile handsets and is the largest PC market and the third-largest hardware market,” said Gartner Research Director Matthew Cheung in a statement on the report. “In addition to coping with the global financial downturn, Chinese CIOs face the challenge of developing and executing dynamic IT strategies to address this trend and other changes in market dynamics as new technologies and service providers quickly enter the Chinese market.”
The report added that historically, Chinese companies have invested more in IT hardware than in software packages and services – although “software investments have been catching up.”
“With most markets in a high-growth phase, China’s ICT industry has an increasing number of domestic providers, in addition to a number of international vendors. We believe that IT end users should benefit in terms of quality and price of products and services,” added Cheung’s statement.
Does this all mean that we should expect an increase in outsourced technical support by U.S.-based companies to emerging Chinese providers? After all, many industries and companies in the United States have a longstanding tradition of stamping that rather dubious “Made In China” label on their products and services, so why would things be any different when it comes to IT and technical support services?
As we wrote about recently here at the Be Different Solutions blog, Gartner recently issued another insightful report, this one claiming that the global IT outsourcing market is expected to hit U.S. $288 billion in 2013. This same report also predicted “IT outsourcing markets in the Asia-Pacific, Latin American, and Greater China regions will climb over 13 percent in 2013 and 2014.” The report even highlighted China, noting that Chinese enterprises were increasingly adopting end-user-oriented services such as helpdesk or desktop services.
Just as we noted in that blog post, we will say here once again:
Outsourcing your IT or technical support needs to a far-off locale may look like a big savings provider on the surface, but once you get down to the business of dealing with customers on a person-to-person, individualized customer service basis, a much different picture can emerge. And things can quickly and easily get ugly for your business and brand. This is even more of a concern for any smart, self-respecting business when you factor in a significant language and cultural barrier – something that certainly and obviously exists between the United States and China.
Here at Be Different Solutions, we believe in doing things in a bit of a different way when it comes to outsourcing your technical support needs. And we heartily believe that this is also the right way to do business. For both you and your customers.
Contact us today to learn more. And avoid having that “Made In China” sticker slapped across your company’s good name.