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CRM Contract for China Telecom Goes to AsiaInfo

November 06, 2007

AsiaInfo Holdings said it has won a contract with China Telecom to develop a Customer Relationship Management System (CRM) for deployment in China's northwest.

Under the agreement, according to reports, AsiaInfo will develop a CRM system to cover 14 cities and regions in Xinjiang.
Beijing-based AsiaInfo, a provider of telecom software solutions and IT security products and services, did not provide financial details.
Earlier this year a report found that medium businesses in China, defined as companies with 100 to 999 employees, are set to invest an upwards of $21 billion to "reinforce their IT infrastructure and products" this year, almost twenty percent more than last year's spending, with the bulk of the spending being on IT services such as CRM, computing and the Internet.

This finding comes from the latest study by New York-based Access Markets International Partners, Inc.: "A sizeable number of medium businesses in China have crossed the first two waves of IT adoption, and are now in the third wave, which focuses on the extension of the enterprise," says Balaji Sreedhar, Singapore-based Research Analyst at AMI-Partners.

The first wave of IT adoption was building the basic IT infrastructure -- personal computers, basic accounting and HR tools. The second wave was connecting within the enterprise, LANs and servers. And the third wave, according to AMI officials, involves "connecting outside the enterprise, such as with suppliers, resellers, channel partners, and customers."
MBs in China are increasingly adopting enterprise software such as ERP and CRM, the study records, finding that "nearly 25 percent of China MBs have adopted ERP and close to 20 percent have CRM software in place." The survey indicates that "further adoption of these two solutions is extremely likely in the next 12 months," Sreedhar says.
AMI finds that "very few MBs use internal funds to buy IT products," they typically opt for either "financing or leasing options."

The top three priorities for MBs in China this year are deploying high-speed broadband Internet access, networking all hardware in the main office and enhancing IT security and privacy, the study finds.

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David Sims is a contributing editor for ContactCenterSolutions, covering the customer relationship management (CRM) and call center industries. He also blogs for ContactCenterSolutions here.