UK and German Businesses Bring In The E-Business Experts For Ongoing Success

Outsourcing elements of e-business initiatives is a critical factor in the ongoing success of European businesses.

According to new research released today by BT Ignite Solutions, just under two thirds of the businesses questioned in the UK and Germany have used external suppliers to deliver their e-business strategy.

And it is these businesses, unlike companies relying solely on in-house expertise, that are more likely to demonstrate tangible benefits of their e-business investment:

• 72 per cent have a clear vision of their e-business strategy in two years time, as opposed to only 54 per cent of companies going it alone
• 66 per cent have experienced a measurable improvement in customer relations; only 49 per cent of companies adopting a 'DIY' approach agreed
• Only 23 per cent said their e-business strategies were influenced by short-term commercial pressures compared to more than a third of 'DIY' businesses

Danny Garvey, director of marketing, BT Ignite Solutions, said:

"Our research shows that businesses benefiting the most are taking advantage of the dedicated expertise provided by external e-business suppliers. Almost half of the companies questioned cited skills shortages as the main threat to the successful implementation and use of e-business in their organisation. When faced on the one hand with the ever-growing IT skills shortage in Europe, and on the other with growing market pressures to implement e-business technology, the best solution is to bring in the experts."

The research also indicates that the skills shortage has taken over from security as the biggest barrier to e-business. The problem created by the skills shortage is cited by half of the UK and German e-business managers interviewed as the biggest hindrance to the successful use of e-business technology in their organisation.

Furthermore, the development of a progressive image is seen as the main benefit of e-business, more so than improved customer relations or reductions in overheads.

Over seven-in-ten (71%) of respondents in the UK and 65 per cent in Germany stated that e-business investments had given their company a more progressive image. However, when asked about tangible financial benefits, only 30 per cent in the UK and 39 per cent in Germany agreed that e-business projects had created a measurable reduction in their company's overheads.

Other findings of the research highlight the fact that German organisations tend to take a more considered, longer-term view of their e-business strategies.

• 74 per cent of German businesses are looking to strengthen customer relationships through e-business whereas only 58 per cent of UK businesses agree
• 25 per cent in German businesses strongly agree that their company usually has time to evaluate all possible options before commissioning an e-business project versus only nine per cent in the UK
• Three-quarters of German businesses have a clear vision of where their e-business strategy will be in two years time, as opposed to only just over half of UK businesses
• UK businesses are more concerned with generating on-line revenues through e-business - 32 per cent of respondents agreed that this is a central goal of their company's e-business strategy, as opposed to only 19 per cent in Germany

Technical details

About the Research

This research was carried out by MORI (Market & Opinion Research International) on behalf of BT Ignite Solutions to gain an insight into the e-business activities of large companies in Germany and the UK.

A total of 200 telephone interviews (100 in each country) were conducted amongst directors and senior managers with strategic responsibility for e-business in organisations with more than 250 employees planning or implementing e-business projects.

Interviews were undertaken between 29 November 2000 and 4 January 2001. Quotas were set by broad industry sector in each country, according to their distribution in the population of businesses with more than 250 employees.

A whitepaper detailing the findings of the research is available free of charge at www.btignitesolutions.com

About BT Ignite Solutions

BT Ignite Solutions is the e-business and communications solutions unit within BT Ignite. The business provides solutions to help its clients to optimise customer value in an IP enabled world. Providing consultancy, e-business, e-CRM and network-centric applications, BT Ignite Solutions delivers and manages solutions on behalf of many of the world's largest and most respected organisations. With current annual run rate revenues of more than 1631.4 billion, BT Ignite Solutions is the largest provider of managed and outsourced network and IT solutions in the UK. It has more than 27,000 customers ranging from mid-sized companies to multi-national organisations in 92 countries across the globe. For more information, visit: www.btignitesolutions.com