More than half the growth in the IT market over the next 10 years will come from emerging economies, says Joel Schwartz, senior VP and GM, global business development for EMC.
Schwartz notes approximately half of EMC's revenue comes from outside the US and when making purchase decisions, emerging countries are showing clear preference for companies that have local research and development or manufacturing facilities.
IDC predicts in 2015 ICT spending growth in emerging markets will remain volatile, but spending will grow at 7.1% - five times the rate of developed markets. China - with 11.4% spending growth - accounts for a whopping 43% of all ICT spending growth worldwide.
Schwartz says it is time to reset some misconceptions and directly address the reality of the situation. ''With more than half the growth in the IT market over the next 10 years predicted to come from emerging economies, R&D in these markets is essential for both innovation and revenue growth for growth-oriented multinational technology companies.''
If organisations want to be growth-oriented multinational technology companies, they need to establish an R&D presence in these rapidly expanding markets, he says.
According to The Global Information Technology report 2015, the technology sector's expansion into emerging markets can deliver expanded profit alongside social impact.
However, the big corporate players and mainstream technology industries are not yet seeing this as a core business opportunity, it adds.
Matthew Blewett, CIO, Business Connexion, says the mindset in Africa has shifted in the past 15 years - with most credit going to the telecommunications and financial industries for creating a remarkable change in numerous countries and a technology explosion.
This has encouraged companies to move into Africa, says Blewett.
It's interesting how in the past, a post into Africa was considered a punishment. But now, companies send their best people, because Africa is where growth can be found, he adds.
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