Gartner: China IT spending to hit US$312B in 2012

22.08.2012
China's healthy growth in IT spending will stimulate adoption of technologies including desktop and server virtualization, software as a service (SaaS) and media tablets, said Gartner Tuesday when releasing its 2012 Hype Cycle for ICT in China report.

The 2012 Gartner Hype Cycle for ICT in China evaluates the information and communication technology products and services that analysts believe will have a strong impact on Chinese enterprises as they look to increase their technology adoption to support international and domestic growth and competitive differentiation, said Gartner in a statement.

According to research firm, IT spending by Chinese end users including both organizations and consumers grew by nearly 14 percent in 2011, versus a little over 5% in the US in the same period.

Gartner expects spending by IT end users in China to grow 12.6% from US$277 billion in 2011 to US$312 billion in 2012.

"Despite the worsening impact of the global economic downturn affecting both local and multinational companies in China in the first half of 2012, the Chinese government's that began in 2011 will continue to influence the IT initiatives of Chinese enterprises through 2015," said Jim Longwood, research vice president at Gartner. "The consumerization of IT will also continue to have a strong impact in China, which has the world's largest number of Internet users and mobile handsets, the largest PC market, and the second largest hardware market."

High growth in IT spending will prompt many Chinese companies to adopt technologies included in the 2012 hype cycle, which will lead to significantly increased market acceptance of many of them during 2014 and 2015, he added.