Service
A recent report by Accenture, ‘The in these economies. At the same time, ICT, an engine for growth in
rise of the Multi-Polar world’ Indian and Chinese companies are emerging markets
describes how the contours of the investing in global capacity with the These new markets across the world
global economy are changing. It is a recent crisis in the global financial all offer significant opportunities for
world in which the assumed economic markets expected to hasten the companies that have previously
power and dominance of the transfer of economic power from focused their efforts on developed
developed world of the US, Europe Europe and the US to Asia. economies. As the Economist
and Japan is being caught and Intelligence Unit puts it, ‘Developed
overtaken by a greater dispersal of The battle for resources. China and markets are the volume; Emerging
global economic power. India are having to cope with the markets are the growth.’
challenge of balancing growing energy
The world’s developing economies are demand with a comparative shortage That’s certainly true of IT spend in
contributing an ever increasing share of domestic energy and natural developing markets, which is running
of the world’s output, trade and resources such as minerals and at up to twice the rate of that in
investment. Indeed, the developing metals, and water. Since 2000, these mature markets. For example, the
world now accounts for 49 percent of economies have been responsible for rate in Russia is 7.8 percent against
global GDP, up from 39 percent in 85 percent of the increase in world 2 percent in France.
1990, and will outstrip the developed energy demand and they will absorb
world within the next two decades. the lion’s share of projected energy Symantec, now the world’s fourth
demand up to 2030. This supply and largest software company after its
These developing economies are demand has a clear effect on prices, acquisition of Veritas, expects to see
China and India, whose rise is by now and oil prices in India and China have year-on-year growth on its operations
well-documented, Eastern Europe, increased by 50 to 70 percent over of 20% in Russia, 20% in Africa,
including Russia and Poland, Brazil, the last five years. 19% in the Middle East, and 21% in
the Middle East, including the United the Southern Mediterranean in
Arab Emirates and Saudi Arabia, Emerging consumers. China and India solutions such as End Point
Africa, and the Southern will together have more middle-class Protection, Storage Management,
Mediterranean: Turkey, Israel and households than the United States by Backup and Services.
Greece. 2020. This implies enormous
demographic and lifestyle changes in Information and communications
Driving success in a all three countries. technology (ICT) is a key engine for
multi-polar world growth in developing countries.
Accenture describes this new world Last year 6.2m passenger vehicles Because such countries tend to be at
order as a ‘multi-polar world’ in which were sold in China, around 20 percent relatively low points on the
there are five ‘dimensions’ or criteria more than in 2006, and there is no productivity and economic growth
that drive success. sign of the growth flagging. Around 4 curves, modest infusions of ICT can
percent of the population owns a car, reap large and rapid gains and
Winning talent. Despite large native compared with 60 percent in Europe as those developing countries lack
talent pools, multinationals are not yet and 80 percent in America. the legacy ‘tail’ of outdated
adequately nurturing talent excellence technologies and related
to support high performance on a Innovation. A combination of a deep infrastructure, they can ‘leapfrog’
global scale. Just when Western investment in education and skills, to more modern, faster and
economies are struggling with older, strategic targeting of emerging cheaper solutions, according to
shrinking workforces, the labour industries, and rapid diffusion of new a Microsoft paper, ‘How information
supply in developing economies is technologies means many emerging and communications technology
booming owing to their rapid markets are moving up the value is transforming economic
population growth: about 97 percent chain at a far more rapid pace than development.’
of the 438 million people to be added was previously thought possible. So
to the global workforce by 2050 will innovation is becoming more For example, says Microsoft, in 1995,
come from developing countries. geographically diffuse, with clusters of only four out of 55 African countries
innovation springing up in locations as had an Internet presence; just three
The flow of capital. Increased diverse as Beijing, Bengalooru years later, all but four had satellite-
government liberalisation has led to a (Bangalore), Greater Seoul, and based Internet connectivity of greater
sharp rise in foreign direct investment Krakow. than 64kbps.
September 2008 www.datacentresols.com | DATA CENTRE SOLUTIONS | 19
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