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ICT investment trends in China; Enterprise ICT spending patterns through to the end of 2017

Press Release   •   Nov 22, 2016 06:39 EST

According to Kable, the ICT market in China is expected to grow in the coming years with growing interest for ICT among SME’s and government plans and policies in the ICT domain. The Chinese government has revealed plans to invest in ICT infrastructure projects to boost internet connection speeds and expand coverage area through optical broadband and 4G networks.

Key Findings

  • Kable’s survey reveals that majority of Chinese enterprises are planning to increase their ICT budget either slightly or significantly in 2016
  • Kable’s survey data reflects that SaaS was the most preferred cloud computing solution area among Chinese enterprises in 2015, as enterprises allocated more than one-third of their average cloud computing budget to this domain
  • Kable’s survey suggests that management is the most popular outsourced function among the Chinese enterprises

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Synopsis

ICT investment trends in China presents the findings from a survey of 105 Chinese enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Chinese enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, and communications. The report illustrates the core technologies that enterprises are investing in, including IoT, cloud computing, security products, and green IT & virtualization. The survey also highlights the approach to purchasing technology adopted by enterprises in China. Through Kable’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in China.

In particular, it provides an in-depth analysis of the following:

  • How ICT budgets are set to change in 2016 in terms of their overall size
  • Allocation across the core elements of IT spend, including hardware, software, services, and communications
  • Distribution of ICT Chinese Yuan (CNY) in areas such as the networks, applications, service desk, and data centers
  • Which ICT functions Chinese enterprises are interested in outsourcing
  • Chinese enterprises’ investment priorities based on their budget allocations across core technology categories such as IoT, cloud computing, security products, and green IT & virtualization
  • Factors that are influencing Chinese enterprises’ investments in each technology category
  • How Chinese enterprises’ IT budgets are currently allocated across various segments within a technology category
  • Chinese enterprises’ distribution of their ICT budget across various segments within a technology category
  • Vendor satisfaction ratings for various core and advanced technology categories
  • Insight into Chinese enterprises’ preferred buying approaches
  • Business and IT objectives that Chinese enterprises are looking to achieve through their IT investment strategies
  • Factors that are influencing Chinese enterprises’ decisions to select an ICT provider

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Reasons To Buy

  • Understand how the Chinese enterprises ICT landscape is set to change in 2016 to prioritize your target market
  • Comprehend how ICT Chinese Yuan (CNY) are being allocated by Chinese enterprises in specific geographies and size bands to improve your market penetration
  • Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, and telecommunications)
  • Realign your sales initiatives by understanding the current strategic objectives of Chinese enterprises
  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (IoT, cloud computing, security products, and green IT & virtualization)
  • Prioritize your focus areas by understanding which factors are influencing Chinese enterprises’ decisions when selecting an ICT provider
  • Understand the changes in customers’ priorities and identify the business and IT objectives that Chinese enterprises are looking to achieve through their ICT investment strategies

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Table of Contents

1 Trends in ICT budgets

1.1 Introduction

1.2 Survey demographics

1.3 ICT budget changes

1.4 ICT budget allocation by core technology area

1.4.1 Hardware budget breakdown

1.4.2 Software budget breakdowns

1.4.3 Third party IT services expenditure

1.4.4 Communications expenditure

1.4.5 Cloud computing budget

1.5 ICT budget allocation by function

1.6 Outsourced IT functions

2 ICT investment priorities and vendor satisfaction

2.1 Introduction

2.1.1 Security product

2.1.2 Internet of Things (IoT)

2.1.3 Green IT & virtualization

2.1.4 Cloud computing

3 ICT procurement trends

3.1 Introduction

3.2 Business objectives influencing IT investment strategy

3.3 ICT provider selection

3.4 Key decision maker for purchasing technology

4 Summary

4.1 Chinese enterprises are investing in various ICT domains in 2016 to achieve competitiveness

5 Appendix

5.1 Definitions

5.2 Further reading

5.3 Contact the authors

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