Multinational giant SWIFT China gold to swallow 269 billion 500 million IT cake

At the end of November, SWIFT (Society for Worldwide Interbank Financial Telecommunication) global banking department director Lazaro Campos with great interest to Beijing. In addition to the business forum hosted by SWIFT for the first time in China, the Spaniard also wants to visit the business executives of China's four largest banks. SWIFT is headquartered in Brussels in Belgium, is a specialized IT services to the financial industry and the international organization of securities industry. Although China business accounted for just 2% of its total revenue, but Lazaro Campos believes in accepting the "Financial Times" interview, with the 2006 Chinese full opening of the banking sector is coming, they can get more revenue from the financial sector investment in IT China.

SWIFT is just one of the new round of gold rush in china. These multinational companies are very clear, with the growth of China's macroeconomic and comprehensive national strength, China's major industries IT investment is increasing year by year. But they do not know is that the current vicious competition around these IT procurement has become white hot, and even multinational giants can not escape. The new monk is no longer popular, is likely to be locked up.

269 billion 500 million yuan cake potential risks

According to Analysys International Research Report shows that in 2005 China's industry IT investment scale market up to 269 billion 500 million yuan, an increase of 14% over last year. Among them, the financial sector investment in IT is 29 billion 900 million yuan, up to a total of 11%, while the government, telecommunications, education, manufacturing and other industries IT investment is comparable with the financial industry. These five sectors of the market IT investment scale of more than 150 billion yuan, more than half of the market.

Analysys International IT research director Yang Qingfeng told the "Financial Times" predicted that by competition, banks, telecom restructuring situation, as well as RFID (without a contact can automatically identify the identity of the impact of new technology) IT technology, the future of the industry IT investment will be more than 10% annual rate of increase.

But on the other hand, the current financial, government, telecommunications and other industries in the emergence of large-scale integration of information, but also to provide IT products and services companies have brought new potential risks.

The information was earlier in the financial industry as an example, the four major state-owned banks "data collection system" has been nearing completion at the end of this year, "management information system" and "data warehouse and business intelligence applications and other projects will also become the focus of investment next year. These two systems are no longer the traditional infrastructure, but the comprehensive integration of business.

In telecommunications and other fields, around the BOSS (telecom operators to support the background of the business) and other systems of provincial construction also come to an end, the national comprehensive information integration is being implemented. In the future, large-scale BI (enterprise analysis and operation platform) information system will become the focus of the 3G application for the expansion of the BOSS system will face up to.

"The government, education and other industries also appeared integration trend, such as the three stage is the purpose of deepening the application of IT, because of the basic IT hardware to build this year has been almost the same, is the rest of the application." Director of Research Department of information system analysis of China enterprise Wang Shugui said to the "financial times".

Before a lot of local IT procurement are looking for small suppliers, will encounter problems encountered when integration. In the future, these small businesses either quit, or be acquired by large enterprises." Some industry insiders said, "another phenomenon is the integration of software and IT services, the proportion of investment will rise, while the ISV (independent software developers) and SI (SI) is to change the provider to an integrated service role".

Transnational corporations are involved in vicious competition

For the entire IT industry chain snatch IT procurement market this cake, expanding the industry market is undoubtedly a good thing. After all, who does not want this market and real estate, securities and other traditional industries as atrophy.

However, for most IT companies, their situation is not getting better and better. With the decline in profits, high cost, low efficiency and vicious competition situation intensifies, their day is "lengnuanzizhi, mixed".

"I do software for more than ten years, although the development of Kingdee is much better than the start of the business, but I have never been as painful as today." Kingdee International Software Group chairman of the board of directors Xu Shaochun recently a little trouble. As one of the largest software giant, Kingdee in the past only worried about the vicious competition from the domestic brands, but now, it is also faced with Oracle, SAP and other multinational companies at the cost of market snatch war.

Recently, around the "golden three" server orders initiative, a month long slobber war between HP and IBM, again will infighting between multinational enterprises behaved most incisive. The main competitor of the two servers, always behave "respect" in front of the media, but in the local tax market, they will not hesitate to make a blush. HP even held a media communication conference in Beijing, denounced the State Administration of Taxation abandoned HP Teng server to switch to IBM untrue rumors".

"IBM used to attack his opponent with public opinion, this is not unfair competition?" An unnamed industry insiders commented, "vicious competition in the field of the server is not obvious, but in the management software market, some multinational companies are more authentic than competitive methods of kingdee."

Another obvious sign is that with more and more multinational companies involved, a new round of vicious competition is still