Key Challenges of IT outsourcing in China
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In 2014, emerging markets including China is expected to generate around 30% -40% of global IT spending. China’s Information Technology Spending is expected to grow at 7.5% in 2015. The Key drivers include Mobility, Internet of Things, Cloud computing, Analytics and Business Intelligence, Infrastructure Management,Business Outsourcing and Managed Services.
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Key Challenges of IT outsourcing in China
- 1. IT Outsourcing Market Overview China Perspective Copyright © 2014 HCL Technologies Limited | www.hcltech.com
- 2. CHINA: IT Outsourcing and Offshore Market Overview • Limited and targeted policy measures including tax relief for small and medium enterprises, accelerated fiscal and infrastructure spending is the reason behind the 7.4% growth projection in. • In 2015 growth is projected to be around 7.1 percent as the economy shifts to a more sustainable growth path 6.00% 5.20% 7.50% 2013 2014 2015 China IT Spending Growth Rate 7.7% 7.7% 7.4% 7.1% 2012 2013 2014 2015 China's Economic Growth Rate Source – IMF • In 2014, China's leading IT spending growth industries are healthcare, transportation, retail and insurance. • IT spending growth will be driven by government reforms, rising consumer affluence and Companies moving to become digital businesses Source – HCL Technologies estimates 2 Copyright © 2014 HCL Technologies Limited | www.hcltech.com
- 3. CHINA: Key Challenges and Drivers KEY CHALLENGES • Lack of internal Resources such as IT Skills • Limited IT Budgets • Low Human Resource Mobility • Adoption Rate of Emerging Technologies is behind other Emerging Countries • Large and Mature Economy • Difficulty in Drastic IT Operational Cost Reductions KEY INFORMATION TECHNOLOGY TRENDS AND DRIVERS • Mobility • Cloud Computing • Better Productivity • Reduce the cost for "run the IT," and to increase it for more "transform IT" • Internet of things • Consulting • Transformation Initiatives • Business Outsourcing • Software Support 3 Copyright © 2014 HCL Technologies Limited | www.hcltech.com
- 4. HCL Addresses these Changing Priorities KEY SERVICES LOCAL STRENGTHS HCL offerings in China include IT outsourcing, offshore services, applications development and maintenance, Mobility Services, Internet of things, Cloud Computing, BPO, infrastructure management, colocation, data center services, software development and Support, engineering services, Business Intelligence and analytics. HCL actively works to address the challenges of the communities and economies in which it operates. With headquarters in Shanghai and delivery centers in Kunshan and Changshu, HCL employs nearly 200 professionals, 92% of whom are Chinese. SUSTAINABILITY HCL works on innovative ideas that benefit society at large. Through initiatives like Customer advisory councils. The Council has been recognized through several awards — including the Forrester Groundswell Award in the B2B category — for the trust it fosters between HCL and its customers. CLICK HERE TO KNOW MORE 4 Copyright © 2014 HCL Technologies Limited | www.hcltech.com