Lenovo readies for outsourcing IT services

Diversifying from its core business, leading Chinese computer manufacturer Lenovo Group Limited is endeavoring to prepare itself to enter the information technology (IT) services outsourcing market.

According to an online report, the PC maker entered into an agreement with the top global designer and solar product manufacturer Suntech Power Holdings Co. Ltd., having it headquarters in Wuxi City of Jiangsu Province in eastern China in this regard. As per the terms of the contract, Lenovo will offer IT management services to Suntech Power for a period of two years.

The IT management services provided by Lenovo will include Suntech Power’s headquarters as well as the local plant in the Wuxi City and the company’s branches across China. In addition, Lenovo will also provide its services to Suntech Power’s units spread out in Shanghai, Suzhou, Luoyang, Qinghai and Chengdu.

The report quotes a senior Lenovo executive as saying that by and large the IT services of his company only comprises a small share of its business in comparison to multinationals, such as Hewlett-Packard (HP) and IBM.

It has been learnt that Lenovo intends to make complete use of its huge market share in the Chinese computer market to concentrate on different industry sectors, such as finance, manufacturing and retail chain, for its IT management services. The PC manufacturer also has plans to expand its clientele in other industry sectors later on during the current year.

The IT management services outsourcing of Lenovo incorporates business process outsourcing (BPO) and total information outsourcing (ITO). As per the definition of global technology research firm Gartner, vendors offering ITO services offers their customers corporate application services and IT infrastructure.