Economist Intelligence Unit Launches new Research on Managing Virtual Teams Sponsored by NEC Philips Unified Solutions

One in Three Executives Believe Virtual Teams are Badly Managed

CAMBRIDGE, England, January 14 - Although working in virtual teams is now the norm for the vast
majority of executives - using video conferencing solutions and other
collaborative communication solutions - about one in three agrees that
virtual teams are badly managed. There are many problems in managing virtual
teams - many of which can be addressed with the right video conferencing
solutions and other collaborative communication solutions - two of the
biggest being misunderstandings arising from cultural differences and the
general difficulty of leading people from a distance. Nevertheless, 65% of
those polled believe that the advantages of working in such teams outweigh
the disadvantages.

The prevalence of virtual teams and the methods by which they
are managed are highlighted in a new report from the Economist Intelligence
Unit, 'Managing virtual teams: taking a more strategic approach', sponsored
by NEC www.nec-philips.co.uk The accompanying survey of over 400
executives from around the world found that 78% now work or have worked in a
virtual team.

The study shows that the use of virtual teams simply evolved
into place at one-half of the organisations polled, rather than being planned
for a specific purpose. Just 11% of those polled say that virtual working was
primarily implemented to enable flexible working. Only 3% say it was
implemented to cut their firm's carbon footprint.

"Virtual teams are absolutely essential to most if not all
companies doing business on any sort of global scale," says James Watson,
managing editor at the Economist Intelligence Unit. "However, relatively
little thought has gone into how best to manage and coordinate these teams."

Managing Director of NEC Philips Unified Solutions Chris de
Silva comments, "Given the potential cost and efficiency benefits, coupled
with the availability of an increasing number of affordable technologies and
services, it is no surprise that virtual working has become a normal and
accepted part of the business landscape. In fact, the implications of not
embracing or considering virtual working could provide greater risks to an
organisation's success."

Some other key findings include:

    - More than one-half of executives say that their virtual teams
      use video conferencing solutions - one of the most recognised
      collaborative communication solutions - on a regular basis. This rises
      to about two-thirds (64%) for the largest firms (those with annual
      revenue in excess of US$10bn), prompted in part by significant cutbacks
      in corporate travel budgets over the past two years.

    - Virtual teams don't appear to be hindering work-life balance.
      Fully 45% of respondents disagree that virtual working blurs the lines
      between work and life and a further 21% are undecided.

    - Although virtual working offers greater collaborative
      possibilities globally, not everyone is taking full advantage. The
      majority of survey respondents say that virtual team members are
      recruited by local managers (58%), thereby severely curtailing the size
      of the talent pool on which they can draw.

For information from NEC Philips Unified Solutions on managing
virtual teams, video conferencing solutions and other collaborative
communication solutions, the report Managing virtual teams: taking a more
strategic approach is available as a free download from
www.eiu.com/sponsor/NEC/virtualteams

About the research

Managing virtual teams: taking a more strategic approach is an
Economist Intelligence Unit briefing paper, sponsored by NEC. It is based on
a survey of 407 European executives from a range of industries, all of whom
represented companies with annual revenue of at least US$100m. Of these, 318
respondents currently participate in virtual teams of some kind, or have done
so in the past; it is this group's input that informs the trends reported on
within this research. The survey was conducted in October and November 2009.
The Economist Intelligence Unit also conducted numerous in-depth interviews
with executives, industry experts and researchers.

About the Economist Intelligence Unit

The Economist Intelligence Unit is the business information
arm of The Economist Group, publisher of The Economist. Through our global
network of 650 analysts, we continuously assess and forecast political,
economic and business conditions in more than 200 countries. As the world's
leading provider of country intelligence, we help executives make better
business decisions by providing timely, reliable and impartial analysis on
worldwide market trends and business strategies. Follow us on
www.twitter.com/theeiu

About NEC Corporation

NEC Corporation is one of the world's leading providers of
Internet, broadband network and enterprise business solutions dedicated to
meeting the specialized needs of its divers and global base of customers. NEC
delivers tailored business solutions, by integrating its technical strengths
in IT, Communications and Networks. The NEC group employs more than 150,000
people worldwide. For further information visit the website
www.nec-philips.co.uk

    For further information, please contact:

    Clare Granville / Kieran Kent
    The itpr Partnership
    Tel: +44(0)1932-578800
    Fax: +44(0)1932-578801

    Ian Guest
    NEC Philips Unified Solutions
    Tel: +44(0)1223-468241
    Fax: +44(0)1223-468333

For further information, please contact: Clare Granville / Kieran Kent, The itpr Partnership, Tel: +44(0)1932-578800, Fax: +44(0)1932-578801; Ian Guest, NEC Philips Unified Solutions, Tel: +44(0)1223-468241, Fax: +44(0)1223-468333