The growth of IT spending in China will offer substantial opportunities to technology and service providers, according to a report released on Tuesday by Gartner.
IT spending by Chinese end users, including consumers and enterprises, grew by nearly 14 percent in 2012, and Gartner expects IT spending in China to grow from $301 billion in 2012 to $323 billion in 2013.
The new “2013 Hype Cycle for ICT in China” report looks at the information and communication technologies and services that will impact Chinese enterprises as they look to expand and compete on both an international and domestic level.
Gartner said that big data, enterprise mobile application services, PaaS and SaaS are among the technologies it identifies as providing a “transformational benefit” to enterprises in China.
Still, there are challenges, including finding experienced and skilled staff to implement new business systems. Gartner said that Chinese enterprises will have to pay more attention to implementation risks as they take advantage of new technologies, and ensure they have experienced personnel to carry out new implementations.
“The consumerization of IT will continue to have a strong impact in China, which has the world’s largest number of Internet users and mobile handsets and is the largest PC market and the third-largest hardware market,” Matthew Cheung, research director at Gartner said in a statement.“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.”
Cheung said that the Hype Cycle is typical of emerging economies, since in the past Chinese enterprises see more value in acquiring IT hardware than software packages and services.
“In the past five years, however, software investments have been catching up as local application vendors have found a place in most enterprises’ architectures and end users have started to realize more tangible benefits of using software packages in their environments,” Cheung said.
The 2013 Hype Cycle for ICT in China is only one part of Gartner’s Hype Cycle report. The Hype Cycle graphic has been used since 1995 by Gartner to “highlight the common pattern of over-enthusiasm, disillusionment and eventual realism that accompanies each new technology innovation.”
Multiple investments and partnerships in the technology and cloud industry in China have been established this year to take advantage of the growth in China. For example, in May, iSoftStone partnered with IBM to launch an SMB cloud platform in Northwest China and in April, ICANN announced plans to open an office in Beijing.