IT executives are less likely to take advantage of the business strategy opportunities created by globalisation than c-suite counterparts according to the recent findings of an in-depth study by leading business process and IT advisory firm, EquaTerra.
The findings have indicated a surprisingly reserved approach to globalisation from top IT executives from around the world, despite the sector continuing to benefit from substantial investment caused by its effects.
The ‘EquaTerra Globalisation Study’, conducted by the Economist Intelligence Unit on behalf of EquaTerra and World 50, a knowledge sharing community for C-level executives, assessed in detail the perceptions of global competition and the challenges of expanding one’s global footprint, according to over 200 leading executives and senior managers from the Americas, Western Europe and the Asia Pacific.
The study revealed close to 90 per cent of study participants viewed globalisation as an inevitable but positive business challenge. However, IT related respondents were 14% less likely to indicate that their organisations favoured globalisation and 17 per cent less likely to see it having an overall positive effect on their company.
Interestingly, when asked what their main concerns were for their businesses in the light of globalization, 31 percent of respondents cited cost reduction. Slashing overheads was a more pressing concern than driving business innovation, transformation and even developing new business. However, in an ominous result for the outsourcing industry, when asked how their companies planned to react to the pressures of globalisation, relatively few respondents cited moving operations to lower cost markets (29 percent) or outsourcing/offshoring (11 percent) as a primary response.
A possible reason for the apparent outsourcing aversion felt by respondents was the perceived ‘loss of control’ experienced through the impact of global sourcing, cited by many as a major worry.
“Whilst some of the sector’s concerns about bearing the brunt of major change are valid, the industry has also been presented with a golden opportunity to lead the way and the IT sector should really view itself as the front of the globalisation ‘arrow’ rather than shying away from the opportunities being presented” said Phil Morris, Managing Director of EquaTerra Europe. “Globalisation is a broad and multi-faceted area, often requiring expert input in order to understand and utilise it to best effect,” he continued.
The survey was conducted amongst 217 C-level and other senior executives across 19 industry groups worldwide. 85% of respondents were from North America and Western Europe
