To: Maverick who wrote (1103 ) 2/3/1998 7:48:00 PM From: Gary Korn Read Replies (1) | Respond to of 1629
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 2/2/98 ASIACOMWK (No Page) END OF DOCUMENT