UK lags in emerging market investment

News 22 Mar, 2012

A study by Tata Communications shows the UK falling behind other established countries when it comes to investing in the emerging markets.

The UK is not investing as heavily into the emerging markets as some of its equally established neighbours, according to research.

The findings from a study by Tata Communications - conducted on its behalf by Vanson Bourne - showed both emerging and established markets were looking to the likes of India, China and Brazil for growth lessons and opportunities to invest.

Whilst the UK was showing interest, with business leaders planning to put 34 per cent of their cash into the emerging markets, this focus is much lower than the likes of the US, which planned on 42 per cent investment. Only Singapore showed less enthusiasm with plans of 30 per cent investment.

Srinivasa Addepalli, senior vice president of corporate strategy at Tata admitted the UK, France and Germany were "slightly less inclined" to invest than the rest of the world. However, his colleague who heads up Tata's European business, Claude Sassoulas, revealed the UK was the worst of the bunch.

"The UK [will invest] a bit less and probably one of the reasons is the structure of the companies," he told IT Pro]/i].

"There are various sectors but they are very large companies. Where Germany is much more in manufacturing, the UK is more geared towards service and banking, making it hard to invest right now."

Sassoulas said UK firms could not keep this attitude for long.

"Large companies in these countries have no choice," he added. "The growth is coming from the emerging markets and the 1.5 per cent predicted growth in Europe is not going to help companies achieve their growth targets."

The research was announced Tata's Global analyst and Media Summit, being held this week in Dubai. For more stories from the event, visit our sister title Cloud Pro.