China Can Do More To Promote Green Procurement, Says Government Insights Asia/Pacific

Singapore & Hong Kong, April 29, 2009 – Results from IDC's 2008 green poll conducted with IT decision makers in the Asia/Pacific region reveal that when green requirements are specified in a request for proposal (RFP), only 9.7% of the respondents in China say that they are mandatory. Compared to the average of 35.3% in the Asia/Pacific countries that participated in IDC's green poll (See Figure 1), China appears to be lagging behind in its efforts to promote the green movement (See Figure 2). However, taking into perspective macro economic factors such as the size and nature of its population and economy, this only serves to illustrate the potential opportunities available for China to play a greater role in the area of sustainable green technology development.
"Clearly, there is room for improvements in order for China to enhance its commitment towards sustainable development", says Raphael Phang, Vice President, Government Insights, IDC Asia/Pacific. Phang adds, "As global demand for a lighter carbon footprint grows, the public sector needs to be more responsive to public pressure. The government in China should seize the opportunity to maximize the unique position it has in influencing and effecting real changes by setting up more regulatory mandates to promote the green movement."

Although technology is a highly strategic tool to achieve wider objectives related to sustainability, Government Insights also emphasizes the need for comprehensive transformations across the value chain. This means not just integrating green considerations into direct IT consumption, but also driving changes through public procurement, given the public sector's multiple roles as a regulator, large employer, and core business owner of diverse policy areas ranging from primary industries and water resources to urban planning and transportation.

Research from IDC China shows that many organizations in the country do not factor in the cost of electricity and utilities in their IT budgets. The main priority of most IT managers is to ensure that their system is reliable and secure for their organizations. In general, these IT decision makers are not concern with increases in power usage as a result of including new features and functions in their IT processes. In fact, what they are most concerned about is the costs and risks involved in implementing a green datacenter.

Freda Tong, Senior Research Analyst of IDC's China Vertical Industry Research and Consulting comments, "In order to drive enterprises to implement Green IT, the government must play a part by setting up regulatory mandates. Furthermore, government departments should also lead by example and implement Green purchasing criteria."

Tong adds, "Although the government in China lacks experience in driving the green movement, it has already put in place roadmaps to include Green IT as a major consideration for government contracts. With such strategic plans put in place, China is ready to welcome ICT vendors with Green IT solutions to participate in its plans to build its Eco City. "

At IDC's inaugural Asia/Pacific Government Insights Eco-City Congress 2009, the potential opportunities available for China to play a greater role in the area of sustainable green technology development will be one of the many topics discussed.

IDC's Asia/Pacific Government Insights Eco-City Congress 2009 will be held at Inter Continental Shanghai Pudong Hotel in China, Shanghai on May 19, 2009, Tuesday. For more information about the conference, visit http://www.idc.com.cn/en/events/detail.jsp?eid=ODM=
To RSVP, go to http://www.idc.com.cn/en/events/cregister.jsp?eid=ODM=