Seamless IT and communications networks key to global business expansion: AT&T- EIU survey

04 October 2007

Mumbai: AT&T Inc has announced that the integration of communications and IT networks is critical to making global expansion work, according to the results of a global survey conducted by the Economist Intelligence Unit (EIU) on behalf of AT&T.

The worldwide survey of 497 senior executives reveals that 42 per cent of firms will be deriving half or more of their revenue from foreign markets within two years, compared to 30 per cent of firms that can claim this today.

Emerging markets such as China and India figure prominently as the overseas destinations of greatest interest, but developed nations - especially the United States - also continue to be of focus for companies aiming to expand in the global marketplace.

Key findings also show that mergers and acquisitions (M&A) are highly favoured as a growth vehicle by respondents - 40 per cent considered this part of their company''s international growth strategy during the next two years. However, the difficulty of integrating communications and IT networks is identified as a common M&A pitfall by 13 per cent of those polled. IT and network integration can indeed make or break a cross-border merger.

Overall, the survey exposes the centrality of IT and network capabilities to successful globalisation. Companies today realise their growth abroad must be supported by corresponding IT and network investment.

To enable expansion, one in five companies plans to increase investment in its network during the next two years by more than 25 per cent , and another 43 per cent of surveyed executives say their companies will boost spending between 10 per cent and 25 per cent .