China SMB spending on IT

[photopress:diana_Ng.jpg,full,alignright]The alphabet soup means that small and midsize businesses (SMBs) in China are forecast to spend $46 billion on new information tehcnology (IT) infrastructure by 2010. This is up from $21 billion in 2005 which is acompound annual growth rate of 14% between 2005 and 2010. Not that this is factual. It is an estimate which appears in a According to a recent study by New York-based AMI-Partners.

Diana Ng, a senior analyst at AMI-Partners, said: ‘Riding on the current momentum, and with the Olympics in Beijing in 2008 and the Shanghai World Expo in 2010, the business and economic growth potential in China remains very bullish.’

Which is beyond doubt and beyond debate and gives the report a certain strong authority.

It states that apart from the more developed Chinese cities of Beijing and Shanghai, which will witness spurts in SMB investments in technology, second-tier cities like Guangzhou, Hangzhou, Chengdu and Wuhan will also ride the IT growth wave.

Diana Ng said that besides infrastructure investments, SMBs in these six cities would like to use the Internet to expand their business regionally and globally. And, again, this is undoubtedly true. The estimate is they will spend $2.9 billion in areas such as high-speed Internet access deployment and channeling resources to develop corporate Web sites and e-commerce facilities.

Diana Ng said, ‘As Beijing and Shanghai become saturated, it is only natural and essential to plan for entry into other nascent cities. The sooner infocomm vendors realize this and act, the better their prospects will be going forward.’

For the thickies like me who do not know what ‘nascent’ means WordNet at Princeton gives us: being born or beginning; ‘the nascent chicks’; ‘a nascent insurgency.’ An useful word. I shall work ‘nascent chicks’ into my conversation at the earliest possible moment.
Source: Businessweek