Logicalis Calls on Government to Subsidise Digital Innovation to Help UK Companies do Business Outside Europe

SLOUGH, England, November 30, 2011 -

UK’s SME Exporters Face Huge Business Costs and Distance Disadvantages Accessing Emerging BRIC Markets, according to UK ICT Solutions Provider Logicalis

Logicalis UK welcomes the Chancellor’s plan to help British companies compete in the increasingly challenging and competitive global market, as laid out in yesterday’s Autumn Statement. It is now calling on the Government to go one step further and provide subsidies for next generation digital communications solutions, such as video conferencing, to SMEs and mid-sized manufacturing organisations.

The financial turmoil in the Euro zone is forcing UK companies to target consumers in the BRIC (Brazil, Russia, India and China) emerging economies, however, the cost and complexity of regularly doing business over such great distances is putting UK manufacturing companies at a significant disadvantage to their global rivals, it believes.

Tom Kelly, Managing Director of Logicalis UK, commented, “We applaud the Government’s commitment to supporting businesses to enable them to compete on a global scale, however, this is only part of the solution. As the medium-term outlook for the European economies worsens, those countries with the money to buy our exports are more than a mere budget flight away.

“If you are a small manufacturer in the Midlands trying to do business with a customer in San Paulo or Beijing, staying close to your customer to develop that relationship is going to be prohibitively expensive.  

“Our manufacturing customers are already looking outside the UK’s borders to help spur growth; Logicalis believes the Government must also think outside the box, and encourage investment in innovative digital solutions, such as video conferencing, that help close the physical gap between the UK and those economies that can actually afford to buy our manufacturing and retail products as well as benefit from our world-renowned technological innovation.”

He added: “Logicalis would like the Government to consider creating an export-focused digital task force and extended investment programme.  Helping our manufacturers invest in cost effective video solutions is now an imperative.”

About Logicalis

Logicalis is an international provider of integrated information and communications technology (ICT) solutions and services founded on a superior breadth of knowledge and expertise in communications and collaboration; data centre; business analytics; video; professional and managed services, hosting and cloud services.

Logicalis Group employs nearly 2,500 people worldwide, including highly trained service specialists who design, specify, deploy and manage complex ICT infrastructures to meet the needs of over 6,000 corporate and public sector customers.  To achieve this, Logicalis maintains strong partnerships with technology leaders such as Cisco, HP, IBM, Microsoft and NetApp.

The Logicalis Group has annualized revenues of over $1 billion, from operations in the UK, US, Germany, South America and Asia Pacific, and is fast establishing itself as one of the leading IT and Communications solution integrators, specializing in the areas of advanced technologies and services.

The Logicalis Group is a division of Datatec Limited, listed on the Johannesburg and London AIM Stock Exchanges, with revenues of approximately $5 billion.

For more information please visit www.logicalis.com or contact:
Logicalis UK
Andrew Parker/Sarah Chidgey
Cohesive Communications
T: +44-(0)1291-626200
E: Logicalis@cohesive.uk.com

.