Growth in Chinese IT spending expected to drive adoption of new technologies

IT spending in China is expected to continue steady growth in 2012, stimulating adoption of new technologies, according to a recent report from Gartner.

The report projects end user IT spending in China, which grew by 14 percent in 2011, to grow by 12.6 percent in 2012. Consumer use of IT products is expected to continue exerting a strong effect on the market, which is the world’s largest base of Internet and mobile phone users. The report also found that Chinese enterprises are beginning to make more software purchases and hire more external service providers after years of focusing more exclusively on hardware.

These changes offer major opportunities to technology and service providers, according to the report. A number of services have reached a point of widespread faith and adoption by Chinese enterprises, while others, especially business intelligence and data services, are being carefully evaluated.

Consumer products such as personal cloud services and tablets are just beginning to see adoption, the report said. Professionals in IT careers may begin to see more of a focus on the Chinese market.

Despite these trends, however, a recent report from UBS analyst Steven Milunovich noted that smartphones still have to make significant progress in order to reach the same market saturation in China as in the United States and Europe.

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