IT buyers see less value in European IT

US and Asian rivals regarded as more innovative

European IT companies do not deliver as much value as their US and Asian rivals, research shows.

A survey of 126 global IT buyers conducted by KPMG and the Economist Intelligence Unit, shows that European IT firms are seen as lacking in innovation and competitiveness.

Crispin O'Brien, KPMG's head of technology practice, says prospective buyers of computing products and services are starting to look more at cost issues than at a need for cultural understanding and reliability.

'They are finding parts of their IT that are not mission critical, which could quite easily be sent out to places like India, where costs can be incredibly low,' he said.

'Among the CIOs we interviewed money was easily the biggest issue, and companies in the US and Asia are so much cheaper, sometimes by as much as two or three times less.'

However, KPMG did find that bosses regard European IT as strong on issues such as attention to local needs and customer service.

O'Brien says when issues like language are involved, IT buyers will often opt for European products.

'The critical factor is cost, if Europe can find a way to reduce its cost base, then it will become more competitive,' he said.