REGIONAL TRENDS: EUROPE

Management and workforce

The rise in offshoring to Brazil, China, and India will be largely caused by companies based in Europe. This growth is principally driven by companies based in the UK, Germany, and the Scandinavian countries. Aside from India, China, and Brazil, Central and Eastern European countries are also considered potential near shore outsourcing destinations for many western European-based companies.

Technology and Products

In Western Europe, the demand for cellular and internet telephony services crowds out the demand for traditional wired voice connections. Use of VoIP in Western European countries, therefore, will continue to grow significantly in the next few years. This growth is driven primarily by demand from small businesses for business trunking, IP Centrex, and VoIP VPN services.

REGIONAL TRENDS: ASIA

Management and workforce
There is a perceived skills gap in technology graduates in Asia. In India, for instance, only about 30% of graduates are employable in the IT industry. The problem is not the lack of technical expertise, but deficiency in other skills such as critical thinking and creativity.
Technology and Products

Whereas three years ago, companies were wary of Linux and open source software, the next few years will witness an increase in the usage of open source and Linux. China could very well illustrate this as its market for mobile phones that run on Linux grows.

REGIONAL ANALYSIS: MIDDLE EAST
A major issue affecting the IT industry in the Middle East is software piracy. The piracy rate in the Middle East and Africa reached 60% in 2006. Most of the piracy happens in Egypt and Yemen. Piracy in Africa has reached a higher level where most countries exceed the 80% mark. The reality of piracy in this region then poses a problem for many software developers who wish to maximize profits in the region. Microsoft has already made a move addressing this matter, by creating educational campaigns and strengthening relations with local dealers.