IT spending in China will reach $216.7 bn

BANGALORE, INDIA: Spending on information technology (IT) by consumers and enterprises in China is expected to reach US$216.7 billion in 2010, offering substantial opportunities for technology and service providers, according to a report by Gartner, Inc.

This represents 5.9 per cent growth from US$205 billion in 2009.

Despite the recent global economic downturn, the Chinese economy grew 8.7 percent in 2009, with IT spending growing at 7.5 percent year-on-year, the report said.

China government responded to the downturn by injecting US$583.9 billion in stimulus measures during the latter part of 2008, specifically addressing infrastructure and public facilities and organizations.

Gartner estimated that US$40 billion of this stimulus funding will impact the Chinese IT industry from 2009 to 2013, with the highest level of spending in 2010 as most stimulus policy measures and plans were finalized and executed during 2009.

IT spending represented 6.1 percent of GDP in 2009. As the IT market evolves and matures, this ratio will decrease slightly to 5.5 percent during 2013.

“The Chinese government's focus on driving high levels of GDP growth will create favorable market conditions for the continued evolution of the IT industry in China,” said Uko Tian, principal research analyst at Gartner.

He added that it has placed the development of the IT industry high on its list of priorities and stresses the wide applicability of IT in economic and social fields. The fixed-capital investment required is easier to obtain than other forms of financing.

The biggest area for IT spending in 2010 is expected to be telecommunications (US$158.2 billion), followed by computing hardware (US$43 billion), IT services (US$9.4 billion) and software (US$6.2 billion). While they represent a smaller proportion of IT spending, IT services and software are expected to attain a faster growth rate than the hardware and telecommunications sectors during the next three years.

According to Gartner, the IT economy in China is driven by large verticals, rather than by consumer IT spending; however, it is slowly evolving toward the consumer market.

Demand from Chinese companies for emerging technologies like software-as-a-service (SaaS), virtualization, cloud computing, unified communications and green IT is low but rising. IT vendors should help their channel partners continue to build skill sets around these emerging technologies, as spending on these technologies may help drive IT spending to 2013 and beyond, the release added.

Name
Email
Comment Here
Code Verification

What's Data up to?

Dell's Windows 8 tablets to cost $199

Windows 8 will support future applications: Ballmer

Euro 2012 free app for Android

Microsoft to incubate 10 Indian startups

Why 122,680 Facebookers 'like' Nirmal Baba?

Do you think IT employees need unions?

Book your trip to Vaishno Devi online

Can Aamir Khan bring down female foeticide?

DataWind terms Aakash II launch a revolution

Subscribe to PCQuest for iPad & Android tablets

Register Free at DQ Top 20 Online portal & get insights on the Indian IT Industry

Enterprise IT News and Analysis in your inbox

Subscribe to the free PCQuest newsletter

Do you think IT employees need unions?

Arun and Cipla - no ladders, no snakes

Cyber attacks: Have India's neighbours turned culprits?

Personal cloud will eclipse PC: Gartner

SMEs don't give much importance to security

Sponsored Links

Custom Site

Demo Downloads On :

1-Click News Updates