Skip to main content

More Chinese Companies Now Invest in Digital Growth

While China has been viewed as a nation that's focused on economic growth via manufacturing, the forward-looking view is evolving -- digital growth is key to their ongoing success. Moreover, China has a limited amount of legacy IT infrastructure, so much of their current capabilities are very modern.

CIOs in China are investing their fast-growing IT budgets in digital technologies, according to the latest market study by Gartner. Their survey of CIOs found that success of the leading internet commerce companies in China is encouraging more enterprises to build or participate in digital ecosystems.

Digital Growth Investment within China

"The survey results show that Chinese CIOs are firmly focused on digital priorities, rather than on traditional IT, and want their businesses to reap the benefits of digitalization," said Owen Chen, research director at Gartner.

Chinese enterprises currently spend, on average, 28 percent of their IT budget on digitalization, which is expected to rise to 39 percent in 2018 -- in comparison, that's 10 percent higher than the global average.

Chinese enterprises expect their IT budget increase to be 10.2 percent, on average -- that's also much higher than the 2.2 percent global average increase.

That being said, as more Chinese enterprises join digital ecosystems, Chinese CIOs are facing new challenges in developing their technology, organization and leadership, according to the Gartner survey.

"Although security, safety and risk rank among the top 10 business priorities of global enterprises, they do not feature in the top 10 priorities of Chinese enterprises," said Mr. Chen. "Chinese CIOs should allocate more spending to security management."

Furthermore, Chinese CIOs rank access to available talent and IT staff skills as the biggest barrier to their ongoing success. Joining the Chinese internet giants -- such as Baidu, Alibaba and Tencent -- has appealed to qualified technical talent in the market.

This situation has resulted in a shortage of skilled people for the other growing enterprises in the market, and a major challenge for the CIOs that must hire, retain and develop digital-savvy talent.

Opportunities for Chinese CIOs to Improve

Digital business, digital marketing, data science, innovation and creativity skills are the biggest talent gaps. That's why Chinese CIOs now look to startups as a source for new talent. In fact, that's also why more Chinese CIOs engage with, buy or invest in startup companies -- to gain access to their talent pool.

Besides, 20 percent of CIO survey respondents indicate that partnering with management is the biggest barrier to successfully achieving their objectives. According to the Gartner assessment, this suggests that Chinese CIOs should make more efforts to improve on their relationship with their business leaders.

In addition, few CIO respondents indicate that growth or market share is a priority for them. Since this finding does not align with Gartner's discussions with Chinese business leaders, it may indicate that CIOs need to shift from a back-office to a front-office mindset, especially where business priorities are concerned.

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent