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Is China Outgrowing the World?

digital-transformationChina is really big. Of course that's no surprise, but in the context of the supply chain it makes a lot of difference to competitors, customers and suppliers across the globe. What's either interesting or alarming based on your perspective, is just how much more growth China expects to experience in comparison with everyone else.


Gartner's report from Beijing shed some light on just what CIOs are looking forward to in 2014. Of course it's still to early in the year to check whether the predictions are holding but here are a couple of points to consider:

The average growth rate of IT budgets around the world averages. 0.2 percent for the year while CIOs in China expect a 13 percent increase.

The Chinese CIO will spend at least 45 percent of its IT budget outside its own organization (outsourced) while everyone else will spend around 26 percent.

China has more dedicated staff in place to lead their enterprises in digital initiatives. That's 38.8 percent in China compared to 6.6 percent internationally.

Do these few points make a difference in how IT in general and the supply chain specifically will change in the next few years? My impression is that the balance of attention and spending will certainly make a difference. What isn't covered in the report is what proportion of this increased spending and focus on digital transformation is coming from government as opposed to private sector funding.

When China finds better, easier, more productive, and more integrated methods to incorporate technology into the supply chain the US and in fact the rest of the world is likely to be forced to follow their lead. This will be a tremendous departure from the leadership positions the US and Europe have enjoyed over the last 30 years or so.

What will your supply chain look like as you conform to Chinese specifications?
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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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