Western Business Underestimates Emerging Countries Capabilities

A major new international study by BT has revealed that Western business is not fully prepared for the imminent impact of emerging markets. While more than six out of ten (64%) directors of large American, British, French and German corporations accept that emerging economies will “reshape” the global business landscape, many seem to have only a rudimentary knowledge of their business environments.

Even though a clear majority (61%) of respondents admit it is crucial their business is able to work with the economies of Brazil, Russia, India, China and South Africa – the ‘BRICS’ nations – to succeed in the long term, many of them demonstrate ignorance of the realities of those countries.

BT commissioned Datamonitor to undertake the study of 800 senior executives in the US, UK, France and Germany for its study, “Building Business With BRICS.” The study discovered that more than seven out of ten (72%) Western directors believe that organisations in the ‘developed’ world are better equipped technologically to work internationally than those in BRICS.

More from Biztech

Future Group - Reliance Retail Deal approved by CCI RBI ban on cryptocurrencies takes effect; prohibition could force investors to tap the black market

Francois Barrault, CEO, BT Global Services, said, “This is a troubling finding. The message hasn’t filtered through yet that these nations are already equipped to make an impact on the global stage. They have shown remarkable agility and speed at adopting new collaborative tools and technologies – quicker, in many cases, than in the US or Europe. Western organisations need to increase collaboration in and with BRICS businesses or risk being left behind.”

According to the study, four in five (80%) of directors realise that the necessary information and communication technology is readily available to allow their businesses to work effectively with those in BRICS. Despite this, the study found that directors perceive data security to be the main barrier to effective collaboration with international businesses, followed by different legislation and/or regulations and political interference.