Asia Pacific tech enterprises fear rising protectionism

More than one third of Asia Pacific technology companies now fear the rising wave of protectionism by governments as a threat to enterprise expansion, according to new research.

More than one third of Asia Pacific technology companies now fear the rising wave of protectionism by governments as a threat to enterprise expansion, according to new research by PricewaterhouseCoopers (PwC).

The PwC report 'Globalisation: a business imperative' has found "a perceived hostility of presence in foreign markets has led to worries over government backlash beyond tariff increases, hindering globalisation plans".

The research has found an increased fear of protectionism by one-third of companies in the Asia Pacific, up from one-quarter before the global financial crisis.

According to the newly released report, "inefficient infrastructure and legacy challenges in target markets has always been the top barrier to expanding presence overseas".

"But the senior technology executives surveyed also reveal buyer hostility to foreign products and curbs on talent mobility as two areas technology companies are increasingly more worried about, especially as markets seek economic recovery amid uncertainty," said Greg Unsworth, PricewaterhouseCoopers LLP Asia-Pacific technology industry leader.

Severe brake on recruiting top IT talent

"The technology sector has constantly sought the brightest and best individuals to work within the industry," said Unsworth. "If protectionism continues to increase, it will severely curtail the ability of global technology companies to attract, retain and move talent around the globe and attracting individuals to work in the sector will prove extremely challenging."

Unsworth said the global recession has brought to the fore challenges to operating models in technology companies.

"Globalisation strategies are considered important to reduce operating costs, grow revenues, secure market share and gain access to key talent," he said.

"However, the perceived risk of a backlash, arising from hostility in other markets, will impact companies wanting to leverage on globalisation to transform business models.

"Globalisation as a more attractive strategy in the downturn to contain cost, has been cited by more than half of the respondents to be a top priority and key driver for globalising Asia Pacific technology companies in the post-downturn environment."

Unsworth said before the crisis, the need for positioning in lucrative new markets or gain market share in existing ones, was cited as a top priority.

Fall in priorities

"However, longer-term positioning such as access to research and development (R&D), or taking advantage of a less demanding regulatory environment, no longer appear to be pressing issues, declining further in importance in the survey rankings," he said.

"Intense cost pressures as a result of economic uncertainties are making the driving forces behind globalisation strategies more short term."

Commenting on the worrying phenomenon, Unsworth said: "A successful globalisation strategy requires a thorough understanding of the markets and a willingness to stick to a long-term plan, even while adjusting to the immediate risks and opportunities of the temporary economic turmoil."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags PricewaterhouseCoopersasia pacific

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ross O. Storey

Unknown Publication
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?