European Companies Lag Behind U.S. Counterparts in IT Investment

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Posted by NewAdmin on 2025-02-06 09:07:58 |

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A recent global survey by Capgemini has highlighted a notable disparity in Information Technology (IT) investments between European and U.S. companies, irrespective of their size.he study, which included 2,500 decision-makers and business leaders worldwide, indicates that large U.S. firms allocate a higher percentage of their annual sales to IT compared to their European counterparts.

Investment Discrepancies Among Large Corporations

ccording to the survey, large U.S. companies with annual revenues exceeding $1 billion invest approximately 1.45% of their sales in technology and IT.n contrast, similar-sized European companies invest about 1.29% of their total sales in IT, marking a 10% lower investment level.eremy Jurgens, Managing Director and Head of the Center for the Fourth Industrial Revolution at the World Economic Forum, commented on this trend, stating, "The market size itself provides a clear advantage for U.S. companies to scale technology investments compared to Europe."Challenges for Small and Medium-Sized Enterprises (SMEs)

he investment gap is even more pronounced among small and medium-sized enterprises.idsize American companies invest approximately 3.04% of their turnover in technology, while their European counterparts allocate about 2.07%.his significant difference persists despite new European regulations, such as the Digital Operational Resilience Act (DORA) and the Network and Information Systems Directive 2 (NIS2), which are expected to necessitate substantial investments in cybersecurity and skills development.

Global Perspective on IT Investment

lobally, there is a recognized need to increase IT investments to maintain competitiveness.pproximately 69% of business executives worldwide believe that enhancing IT spending is crucial for their organizations' success.owever, the observed investment disparities suggest that European companies may need to intensify their focus on technology to remain competitive on the global stage.his investment gap underscores the challenges European firms face in scaling technology initiatives compared to their U.S. counterparts, potentially impacting their long-term competitiveness and innovation capabilities.

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