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Tuesday 29 March 2011

Role of IT and Loyalty Factor in Attraction of Chinese Investment

One of the most important factors, which could add value to presented business project to Chinese party, is information technologies. Why this is information technology? The main reason is that Chinese have advanced level of information technologies.

Chinese managers expect from foreign companies, that they will present them such indicators as project management indexes, feedback indexes, efficiency indexes and other index groups. Moreover, they are very strict about their nomenclature. Therefore, it is important to make not in a business project about IT programmes, which are used in a company and should be well-known all over the world, for instance, Microsoft Navision, Sub or Oracle. In case, when it is noted such local accounting programme as "1C", this leads often to distrust, because Chinese businessmen don't know such IT-programme and will have doubts about correctness of made calculations of efficiency indexes. In such way, usage of worldwide IT-programme may become one of the strong side of your business project.

It is became already spread practice for those companies, which wish to attract investment from China, to introduce Microsoft Navision Axapta. The majority of them do this, in order to demonstrate, that financial processes and accountancy are built according to European standards. In addition, company can also show, that it has skilled personnel in financial area.

The other important factor in investment attraction from China is loyal attitude to the investors. Any investment project should not look as a one-time deal. Therefore it is significant to show investors not only, that you will fulfil business project, but that you continue also to provide services for it. For instance, if a foreign company built a house in three years, it could provide services during other 30 years of building maintenance. In such way, project should be filled with intention to continue cooperation and should be oriented on long-termed outlook. Why this is so important? The point is that Chinese have a habit to view everything as a long process and during long time. If they talk about balanced or misbalanced economy at the moment, that means they speak about 30-years process. Thus, factor of loyalty and building of long termed business relations should become the priority for the manager, if he wants to get investment from China.

To conclude, there are many factors, which could improve your business project attractiveness. However, experienced manager could increase his project attractiveness due to knowledge about role of information technology factor and loyalty factor. This allows him to make successfully accents on necessary points during presentation of project to Chinese party. To be exact, manager could include in project notes about IT-programmes, which are installed in a company and have worldwide spread brand. In such way, Chinese will trust more to calculated financial indexes. In addition, manager could present his project in form of long termed deal, not as one-time deal, taking into consideration Chinese way of thinking and such value as loyalty.

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