Analysts Highlight Findings From Latest Book “IT and The East” During Gartner Symposium/ITxpo 2007 Emerging Trends
SAN FRANCISCO--(BUSINESS WIRE)--To stay competitive in the global economy, it’s imperative that IT organizations implement a “Chindia” strategy, according to Gartner, Inc. Gartner examined how China and India are altering the future of technology and innovation in the newly released book “IT and The East”, published by Harvard Business School Press.
Gartner analysts are discussing the latest findings from the book during Gartner Symposium/ITxpo 2007: Emerging Trends, being held here through April 26. The “Chindia” framework is offered as a means to examine how these two countries may soon re-assert their collective influence on the international stage.
“Today China and India are producing some of the world’s best-trained computer science and electrical engineering graduates,” said Jamie Popkin, group vice president at Gartner and co-author of IT and The East. “Far from being simply a source of cheap labor, both countries soon will be able to compete favorably for global business – as India’s IT services firms have done – not on price, but on competence and capability.”
“The bilateral economy of China and India is in its infancy, but new momentum suggests a powerful relationship is building," said Partha Iyengar, vice president and distinguished analyst at Gartner and co-author of IT and the East. “China-India – ‘Chindia’ – enterprises will have access to complementary skills and resources and, in turn, will have the potential to lead many global markets."
China’s IT Landscape
By 2008, Gartner says it is highly likely that China will generate intellectual property at a rate comparable to developed countries and, in the same year, actually surpass the United States as the population with the largest English language capacity (in terms of English language comprehension and proficiency, however, China will remain a challenger, not the global leader).
By 2010, Gartner anticipate at least eight Chinese IT brands will be recognized internationally. The world will witness the birth of a real IT superpower if government restrictions are loosened and the Chinese instinctive talent for entrepreneurialism continues to be encouraged.
“Whether China emerges as a global leader in science and technology innovation relevant to the information and communications technology (ICT) industry is a pivotal issue for you as a business strategist or IT decision maker in Western corporations,” Mr. Popkin said. “The outcome will influence which global suppliers can establish a strong presence in China for the long haul and which of China’s strongest domestic companies can compete in international markets.”
India’s IT Landscape
Anyone doubting India’s capacity to impact the future of technology, only needs to consider the source of its IT industry. In 1995-1996, India’s exports of IT services were worth about $1 million. In 2004, they were worth $13 billion. In 2000, India’s share of business process outsourcing (BPO) was worth $148 million. In 2004 it was worth $3.5 billion. “Those kinds of growth rates mean: disruptive, challenging forces that can unseat rivals and destroy business plans,” Mr. Iyengar said.
With its challenging logistics, stifling bureaucracy, official corruption, and leftist political influences, Gartner hears from its clients that question if India is worth the effort. These questions often come from CIOs, business strategists, and decision makers who doubt whether the benefits of an Indian connection can truly outweigh obvious risks and discomforts. The vast majority of the global Fortune 1,000 companies have agreed India is worth the effort.
“We also think India is worth the effort when the problems you are attacking and opportunities you are chasing match what India can provide,” Mr. Iyengar said. “We estimate that the largest IT services providers will add between fifteen thousand and thirty thousand employees annually, on average, for the next several years in anticipation of continued rapid growth in global demand.”
Emergence of “Chindia”
New joint ventures between Indian IT service firms and their Chinese counterparts are early illustrations of how a formidable Chindia economy could develop. Indian firms bring to the table world-class software expertise and leadership in global markets. Chinese partners have legions of capable, low-cost employees and greater know-how with clients in Japan, Korea and other Asian countries where English is less prevalent.
China and India hardly qualify today as trading partners by conventional standards for industrialized economies. Total bilateral trade amounted to $18.7 billion in 2005 — more than twice the 2003 level. This is only a small fraction of each country's foreign trade. China's foreign trade in 2005 was $1.4 trillion, rising 23 percent from 2004. India's foreign trade in the 2005-2006 fiscal year amounted to $241 billion, up 28 percent. Yet the annual growth rate of internal “Chindia” trade is outpacing those high-stepping totals, at an estimated 30 percent to 40 percent.
“As China and India increasingly redefine the future of technology and innovation, knowing how to map a course into that future will be a core competency of the most accomplished travelers,” Mr. Iyengar said.
Copies of IT and The East are available at Gartner Symposium/ITxpo on the third floor of Moscone West. The book is also available online at the Harvard Business School Press Web site at http://harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detai l.jhtml;jsessionid=OVYSSBUX1A4HEAKRGWDR5VQBKE0YIISW?id=3145. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo: Emerging Trends is Gartner’s premier event focused on the emerging trends, technologies, business models and new management thinking poised to have a dramatic impact on business, the economy and society. More than 2,000 IT professionals from the world's leading enterprises, rely on Gartner's Symposium/ITxpo: Emerging Trends event to gain insight into how their organizations can use technology to address business challenges and improve operational efficiency.
In San Francisco, an integral part of Gartner Symposium is the ITxpo show floor, where the latest cutting-edge solutions will be showcased by more than 80 best-of-breed providers and up-and-comers. There are 11 ITxpo marketplaces, including Application Development & Integration, BI & Data Warehousing, BPM, Data Center/IT Operations, Portals, Content & Collaboration, Outsourcing & IT Services, and Security & Compliance. ITxpo marketplaces are focused areas designed to aggregate solution providers into a specific market and link conference topics to market solutions. Attendees can attend technology company presentations and schedule face to face meetings with exhibitors of their choice. For more information, please visit www.gartner.com/us/symposiumwest.
About Gartner
Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for our clients to make the right decisions, every day. Gartner serves 10,000 client organizations worldwide, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,800 associates, including 1,200 research analysts and consultants in 75 countries. For more information, visit www.gartner.com.
Gartner
Christy Pettey, 408-468-8312
christy.pettey@gartner.com
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