How Does IT Service in China Serve the Strategy of “One Belt & One Road”
Source: Pactera View: 300 Date: 2015-09-26

"One Belt & One Road” is regional economic cooperation and development strategy concept lead by China that has become an important point of current international economic strategy in China and an important driver of constantly healthy development of economy in China. The strategy of “One Belt & One Road” provides opportunities of industrial transfer and transformation for those industries with overcapacity such as iron and steel, building materials, chemical and equipment manufacturing. How does IT service industry, which located in ecological downstream compared with traditional industries and hasn’t had problems on overcapacity participate in this national strategy?

Although “One Belt & One Road” as obvious industrial orientation, if considering big background of globalization strategy for China’s enterprises, we can easily find that the roles or opportunities may be played by IT service enterprises. “One Belt & One Road” can be seen as the important planning direction under New Normal since launching “Go Outside” strategy in the end of last century, and is continuation and deepening of globalization for China’s enterprises. China IT Service Industry has born from offshore R & D business in developed countries at the beginning of 21st century, and rapidly accumulated huge amount of IT technological competencies, operation management experiences and global delivery resources from service multinational enterprises during the period of its rapid development. Some big IT service providers have begun to provide technological services for national enterprises with relatively high information degree to connect with global market. These competencies, experiences and resources from IT service providers undoubtedly can be duplicated and used in new context of “One Belt & One Road” to help traditional enterprises to smoothly and effectively develop regional market and to accomplish transformation and upgrading.

Information technological service is an important support for current enterprises to accomplish globalization strategy. First of all, it provides language technological platform of communication and collaboration for multinational operation of enterprises. With promotion of “One Belt & One Road”, there will be some enterprises those have operation activities in China’s market originally participating into this strategy. For them, the first step to go outside is to change their basic information system including office, fiscal affairs, HR and marketing to accommodate and fit for demands of multinational languages and cultural communication. However, in China’s enterprises with relatively deep bases of globalization, there are also many only involving operations of some developed countries such as Europe & USA and Japan; therefore, partly information application currently belonged by them also need adjustment according to complicated language and culture environment between Europe and Asia under “One Belt & One Road”. China’s IT service providers with professional technological abilities both of enterprises’ information application and multi-language, especially minority languages in Asia or Europe will rapidly promote sea process of “One Belt & One Road” for China’s enterprises.

Another important function of information technological services to support enterprises’ globalization is to help them to build flexible and effective competency of global R & D. Multinational enterprises in Europe and USA in order to accomplish huge amount of innovation and demands of localization for service in regional markets, in process of globalization have formed local & onshore & offshore R & D center network. Because in the low end of value chain of global production for long term, China’s enterprises who “go outside” also realize that it is difficult to form competed advantages, only based on achieving resources and market when face technological extrusion from leading enterprises in West. And to build core R & D and innovative competency has become more and more important goal for each industry and each enterprise to “go outside”. Enterprises those make industrial transferring and upgrading in “One Belt & One Road” also need to build global competency of R & D via sea process, to consolidate and improve current technological advantages. China’s IT service enterprises always are important part of global R & D ecosystem for multinational enterprises, hold management method of offshore model in global R & D headquarters, technological organization competency and talents of internationalization, and have abilities to provide R & D support with advanced advantage level in the world for global operation of China’s enterprises.

The mode of collaborated combined fleet from China’ enterprises focused by “One Belt & One Road” strategy wined foreign orders. Besides industry, capital, engineering and finance, information technological service enterprise also is indispensable member of combined fleet. With practice of “go outside” for ten years, China’s enterprises have realized localized overseas operations will be the key for really forming global competitiveness and brand influences. whether enterprises can comprehensively integrate with overseas industries with low cost and high efficiency in multi-level such as processing, control, talent and culture or not, it will be depended on duplication and customized competencies from headquarter information systems. Compared with many choices of self-establishment and outsourcing when build offshore R & D center, multinational enterprises will be more relied on local service competencies from their global technologies service providers when enter regional markets. From another angel to see, the premise of information technological service provider outputs technological competency, cooperates with local development of customers in scope of the world is the globalization from service providers themselves. Some big China’s IT service enterprises themselves born from European and American markets are also practitioners of “going outside”. They have relatively international leadership team, matured processing, and local delivery competency in multi-countries after many years’ accumulation, and they also have qualification to become cooperated partners of information technology for China’s enterprises in other industries on the road of globalization.

In conclusion, China’s IT service providers have potentials to build “One Belt & One Road” cooperated with China’s enterprises in three fields of language technological service, R & D service and enterprises’ information service. Besides that, some service providers with technological competencies in emerging digital business technologies such as internet, big data, cloud computing, mobile technology, internet of things also have certain opportunities. It is easily stopped in advertising effectiveness or subsidies support if they borrow support from national strategy. As mentioned above, if China’s IT service and technological enterprises want to really achieve foreign markets, they need depend on their own hardworking of globalization to achieve comprehensive improvement in technological R & D competency, information level, talent diversity, cultural integration, and strategy and operation strategy in regional market.

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