ITC firms set to expand geographically to ease financial woes.
As many as 57% IT and telecommunications firms plan to expand internationally to evade the current economic environment in Europe, a survey by business insurance specialist QBE has suggested.
The research, covering more than 500 businesses across the UK, France, Germany, Italy and Spain, also shows that a third believe it will be two years of more for a full economic recovery in the region.
In terms of location, building and construction firms are looking beyond their neighbouring European markets for expansion. Some 25% see opportunities in Asia, 21% in South America while 13% are targeting Africa.
The sector does, however, remain wary of the risks of operating in less familiar territories. The biggest risks that firms believe they face when expanding into new countries is dealing with local regulations (44%) and differing cultures and business practices (44%) followed by concerns about financial risks and instability (40%).
Barbara Chandler, head of QBE Multinational, said: "The strategies of Europe’s IT and telecommunications firms to expand into less familiar territories can certainly bring great rewards but the associated risks must be fully understood and mitigated against. I would urge companies to consider what support their insurer can provide them in this respect."