The report, based on the views of 500 UK companies, investigated technology’s role in making UK firms competitive. Alongside a greater emphasis on putting customers centre stage, it pinpointed how globalisation was putting pressure on UK companies to be more efficient and examine the costs of IT development in different locations. Globalisation’s effects were also seen in the number of UK firms recruiting foreign IT staff. Some 59% (up from 52% two years ago) said they employed foreign IT staff, and 25% hired Indian staff and 11% Chinese IT staff. Rather than meeting staffing shortages, the main driver behind this hiring policy was international growth, cited by 61%.

Respondents also said that they would welcome help from government. More than four in 10 wanted support in using IT service to access overseas markets, and 39% thought that a national centre of excellence to identify and sharing best practice would be beneficial.

The report highlights ways for government to help companies better exploit the benefits of IT. Business wants clearer and more consistent policies on e-commerce, support for overseas activities, and measures to address technology and skills weaknesses, and security vulnerabilities,” said John Cridland, deputy director-general of the CBI.

While large and small companies said IT had played a major role in their ability to enter new product or geographical markets, this was less true for mid-sized companies. They were also the least likely group to outsource their IT.