2/2/98 Asia Computer Wkly. (Pg. Unavail. Online)
1998 WL 9889674
Asia Computer Weekly
Copyright(C) 1998 ASIA COMPUTER WEEKLY
Monday, February 2, 1998
THE OPINION PAGE: I.T. Limelight Now On Chinese Market
When the going gets tough, turn to the places with potential.
The financial woes in Asia have hit many companies hard, even when the Asian
contribution to their revenues has been relatively small. Part of the
problem was that forecasts were always easy when it was certain that the
Asia-Pacific would continue to have glowing growth reports.
The present situation has put all the budgets out of kilter, and there are
few countries left in the region on which IT companies can focus with any
degree of certainty.
The range of IT vendors which have switched their focus to countries
untouched by the South-east Asian currency crisis in the Asia-Pacific have
run the gamut from software companies like Oracle, network companies such as
Cabletron and Ascend, to systems integrators like Teledata.
Other than India and Australia, IT companies are banking on China as a
significant source of their growth this year. The Chinese economy has great
potential for growth, and the country is not bogged down by legacy systems.
Most vendors have already established a presence in China, either through
distributorships or with actual offices.
However, there is still a bamboo curtain where dealing with China is
concerned.
Besides the distances involved in getting around within China and business
practices that differ greatly from elsewhere, vendors have to be aware of
the technological lag in the inner regions of China.
Though Beijing, Shanghai and Guangzhou may be as advanced in IT as the most
modern of cities elsewhere, few may be familiar with an ATM backbone in the
rest of China.
Even if awareness is created for state-of-the-art technology, some
organisations may not have the budgets to pay for the latest in technology.
The competition is going to be even fiercer with so many IT companies
converging on the country. Turnover in IT companies within China is
reportedly very high.
Couple that with competition from domestic IT companies which are willing to
offer the same product for less, and the stage is set for a bloodbath.
---- INDEX REFERENCES ----
KEY WORDS: COUNTRY: CN CHINA; ASIA; GUANGDONG; CHINA
REGION: China (CH)
Word Count: 336
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