A new world order of competition is emerging in the global technology and telecommunications industries. But most North American companies are not keeping pace with the changes, according to a new study conducted by two executive thought leadership organizations, in cooperation with global management consulting firm A.T. Kearney. In fact, two-thirds of the more than 300 North American executives surveyed say they have not even instituted formal practices for tracking and analyzing their competition.

      The study, Crunch Time: The Competitiveness Audit, was conducted in late 2004 and early 2005 for the Business Performance Management (BPM) Forum and Chief Marketing Officers (CMO) Council. Its findings were announced at the A.T. Kearney Global Tech+Telecom Competitiveness Summit. The study shows North American executives are acutely aware of increasing global competition. Approximately 90 percent of survey respondents said they expect competition in their sector to intensify in the next two years. Less than one percent anticipates a decline.

      The study underscores a dramatic realignment of global competition, including the rapid rise of China and India as important new centers of competition. In fact, U.S. executives point to China as a source of competition over the next two years nearly as often as they do other U.S. companies.

    North American companies are increasingly turning to offshore operations and outsourcing as a means of coping with overseas competition, the study found. While respondents cite the cost of skilled labor as the most important factor driving offshoring decisions, it’s not the only one. Access to local markets, innovation...

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