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Posted by Gene Cao on May 27, 2013
China’s GDP growth slowed to 7.7% in Q1 2013. While below market expectations, this growth rate still ensures strong continued IT spending, as local organizations seek to meet ongoing demand for products and services. At the same time, we expect Chinese government stimulus packages to drive increased consumer demand, particularly in the retail, supply chain, and banking industries. Chinese organizations wishing to capitalize on these opportunities are currently seeking ways to transform their business and decision-making processes and broaden their product portfolios. This, in turn, has driven increased interest in third-party service providers as organizations seek to augment limited (or, in some cases, nonexistent) internal IT capabilities.
Recently I spoke with IT managers at two local Chinese companies; they shared their recent experience with third-party service providers.
I expect the usage of third-party service providers to continue to grow in China. As it does, organizations must consider strategies for addressing related risks:
So what should you do to take advantage of the increasingly broad range of viable IT service providers in China? I provide additional suggestions in my most recent report, Market Overview: IT Services In China, 2013. But I’m also interested in hearing from you. Please share any feedback or insights from your own experiences.
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