West misjudges BRICS' technology

Three-quarters of Western business executives incorrectly believe technology will hold emerging markets back, according to a new study by BT and Datamonitor.

The survey of 800 directors of American, British, French and German corporations found that 72 per cent believe BRICS - the emerging markets of Brazil, Russia, India, China and South Africa - have less advanced technology than the West.

"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," said Francois Barrault, chief executive of BT Global Services, in a statement. "They have shown remarkable agility and speed at adopting new collaborative tools and technologies - quicker, in many cases, than in the US or Europe."

According to the report, BRICS invested $63.8 billion (£32.04 billion) on IT in 2005 alone. Over the next four years, such markets will account for six per cent of technology spending across the world.

"In terms of the technology that enables collaboration between organisations and countries, there is an effective global network in place," Barrault said.

The surveyed executives said they believe data security, political interference and different regulations are major barriers to working with such emerging markets, the study found.

However, Western directors must get over their stereotypes or face damage to their business, said Neil Hendry, director of consulting for consumer markets at BT Global. "On the one hand most executives are enthused about the business opportunities, but on the other, they are very much in the dark about these countries, even on the most basic things," he said in a statement. "It shows they need to do more to realise the opportunities that are ahead of them."

According to the survey, India is seen as the most comfortable BRICS country to do business with, while Russia causes the most concern of the five.

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