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ResearchPublication Date: 15 March 2011 ID Number: G00210613

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Key Issues for Emerging Markets, 2011

Luis Anavitarte

The emerging markets agenda provides insight and recommendations, unveiling marketcharacteristics and trends, so technology and service providers have elements on whichto base IT investment decisions. Our 2011 coverage also addresses selected end-user-focused documents regarding China and India.

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TOPIC DESCRIPTION

The emerging markets agenda provides insight and recommendations, unveiling marketcharacteristics and trends, so technology and service providers have elements on which to basetheir IT investment decisions. Our 2011 coverage will also address selected end-user-focuseddocuments regarding China and India.

WHY THIS IS IMPORTANT

Emerging markets have the highest growth rates in IT. To be successful, providers should realizethe differences between them, and also the differences within emerging markets themselves. Theagenda is focused on providing information to providers' executives in the following roles:decision makers engaged in the international business side of their operations, productdevelopment and management, marketing and market/competitive intelligence professionals,business and strategic planning, R&D teams, and sales and channel executives.

KEY ISSUE DESCRIPTIONS

The emerging markets agenda is focused on providing insights and recommendations aimed at

understanding IT spending, trends and market opportunities at the enterprise and consumerlevels. We will continue our inside-out approach of analyzing countries and markets, includingnotes on regulatory issues, such as in green IT and Brazil's IT innovation. Many of our analyseswill state if IT phases will follow those seen in mature IT markets, or if they will undergo differentpaths to maturity.

Key Issue: Where are the growth opportunities in emergingmarkets for my products and services? How do I attack them?

Our research will unveil key IT growth opportunities in selected emerging markets in Asia/Pacific,Latin America, the Middle East and Africa, and Central and Eastern Europe. The selection oftopics responds to clients' interest and our analysis of markets and trends, such as continuing our"smart cities" research and analysis. All documents will provide market insights and will present

recommendations on how to successfully address them. Research is distributed among the fourmajor IT areas of computing hardware, software, IT services and telecommunications.

Key Issue: What distribution strategies can open new marketsegments or enable growth against established competitors?

In emerging markets, IT products and services and their distribution can be equally important. Asinternal markets in developing economies keep expanding, the challenge of understanding how tosuccessfully reach and address "beyond Tier 1 cities" is greater and more prevalent. Shouldvendors jointly work with partners' alternative models tailored to each market and truly moveaway from one strategy fits all? Gartner's documents on distribution strategies and channels inemerging markets will be expanded and reinforced with new fact-based research.

Key Issue: What are the technology adoption patterns inemerging markets?

The rapid economic developments in many emerging markets suggest a shorter delta in theadoption of latest IT versus mature markets; and also because developed economies have beenmore cautious in their IT expenditures since the financial crisis erupted in 2008. Although, in most

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cases, large enterprises will keep with 'business as usual' with their new IT acquisitions andupgrades in 2011, small and midsize businesses (SMBs), exhibiting fewer legacies andeagerness to compete in the marketplace are showing aggressive adoption patterns. Exceptionsto the rule always exist, and some technologies do have challenges in some emerging regions,such as embracing cloud computing in Latin America in large and midsize organizations. In allsegments, consumer markets are demonstrating strong demand agility with penetration in somecountries above 50% of all IT expenditures. The agenda will continue unveiling behaviors, trendsand patterns in the marketplace toward latest technologies and services.

Key Issue: How do I address consumer and SMB buyers inemerging markets?

Not all consumers are equal, and, consequently, differentiation must be understood andaddressed. Therefore, we will continue analyzing consumer markets with emphasis on socio-economic profiles to facilitate not only market penetration, but also to suggest technology andservice providers with research and development. Our fact-based research will emerge fromsubstantial consumer surveys executed in more than 20 countries.

As market segments with phenomenal momentum in emerging markets, our research on SMBswill expand strongly and will also be based on surveys. In close sync with Gartner's SMB team,

we will produce a series of documents covering Brazil, Russia, India and China. The mainobjective of our 2011 BRIC series is to provide technology and service providers with elementson how SMBs manage their IT spending to facilitate market expansion.

A most important variable in many developing economies is the difference between urban andrural markets, which is becoming evident in India and Brazil in particular. Indeed, a strongcomponent of these countries' real gross domestic product is the consumer, and within it is theincreased demand of technology from outside traditional buying cities.

Key Issue: How do I craft technology, product, distribution andsupport strategies for specific emerging markets?

A major challenge in the marketplace in emerging markets is to articulate a coherent cycle from

technology design to technology support once in hands of clients. All our 2011 emerging marketresearch will have this Key Issue embedded, such as with our planned IT country reports ofMexico, Saudi Arabia and Poland. The nature of this Key Issue suggests that technology andservice providers must have an ongoing follow-up and analysis of the different researchdocuments that will be part of the emerging markets agenda in 2011.

Key Issue: How do I make IT decisions, given my specificnational requirements?

The agenda will address selected end-user-focused documents on China and India in 2011. Aclose analysis of the demand on specific technologies and services will be critical, as this newresearch will help user organizations in better planning their opening or expansion of existingoperations in these markets.

RECOMMENDED READING

Some documents may not be available as part of your current Gartner subscription.

"Emerging Market Analysis: Developing a Solid 2011 Market Growth Strategy in EmergingRegions"

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"Market Insight: 'Smart Cities' in Emerging Markets"

"Market Insight: Achieve Success Through Economies of Scale in IT Consumer Markets"

"Emerging Market Analysis: Q&A, Gartner's 2010 Vision of the BRIC Countries"

"Emerging Market Analysis: Maximizing Consumer Opportunities Within the Emerging Middle

Class""Emerging Market Analysis: IT, Turkey, 2010 and Beyond"

"Emerging Market Analysis: IT, Brazil, 2010 and Beyond"

"Emerging Market Analysis: IT, India, 2010 and Beyond"

"Emerging Market Analysis: IT, Russia, 2010 and Beyond"

"Emerging Markets: Watch for the Differences"

Key Issues

Where are the growth opportunities in emerging markets for my products and services? How do I

attack them?What distribution strategies can open new market segments, or enable growth againstestablished competitors?

What are the technology adoption patterns in emerging markets?

How do I address consumer and SMB buyers in emerging markets?

How do I craft technology, product, distribution and support strategies for specific emergingmarkets?

How do I make IT decisions, given my specific national requirements?

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2011 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

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