March 19th, 2007
Almost a third of European IT managers have had unsatisfactory experiences with non-European service suppliers, according to a survey by the Economist Intelligence Unit.
The research also found that 40% believed European suppliers retained a competitive edge in IT innovation and technical excellence.
Although many multinationals have struck deals with IT services companies based in Asia or the Indian subcontinent as part of a trend towards offshoring, almost 90% of the 100 IT managers surveyed across 20 European countries said they preferred to use local suppliers for at least some of their products and services.
Less than a third of respondents said they planned to increase their IT spend with suppliers from Asiaâ€™s emerging markets.
European IT services company KPMG International, which commissioned the Economist Intelligence Unit to undertake the Competing on Strengths survey, said that strong progress was being made by Europeâ€™s IT providers in introducing products and services. Around half the IT departments questioned said they planned to boost IT services spending.
However, 40% of IT managers rated the price competitiveness of European IT suppliers as â€œpoorâ€ or â€œbelow averageâ€, although price is not the only criteria used to select a supplier.
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