Westward Expansion of Europeans in the 21st century: this time it’s IT!

Actualizado: 10 may 2021

Over the last decades Europe remains one of the most economically stable and favorable region for doing business in the world. A united European market, harmonized fiscal and legal policies, 500 million customers, qualified labor force and high living standard create perfect competitive advantages for the business development within Europe. Nevertheless, there are industries where European companies should and could become more dominant.

For example, the software industry. Only two European companies (SAP and Amadeus IT Holdings) are in the list of the World's Top 10 Software Companies 2017 which consists for 80% out of IT giants from the USA. Apparently, historical and cultural prerequisites, economic background and specific entrepreneurial spirit contributed to the success of American IT industry. But if this ambience can be still nourishing and attractive for IT-entrepreneurs from other parts of the world nowadays? Several facts about the USA can help us to answer the question:

  1. US business is more digitalized in comparison with other countries. Enterprises have 508 apps in use on average. For example, 50% of companies in the US are using cloud service, while in Europe it´s only 25%.

  2. Number of small and medium-sized enterprises in US is around 29 million, at the same time for EU28 this indicator is a bit higher than 22 million. Talking about SMEs, we should remember that they are not only one of the key elements of economic growth and job creation, but also active innovators and IT solutions users.

  3. USA is one of the leaders of tech market growth in 2017 – above 4%. In Europe only Sweden and Denmark demonstrate comparable figures.

  4. Limited access to growth capital in EU is another reason - European start-ups and young companies have to look elsewhere to fund their growth. Taking into account the fact that the USA is a world leader in venture capital investments, it will be difficult to find better place to attract scale-up capital.

  5. Competitive and dynamic US market full of customers who are eager to experiment with new products and services. They help to test software in the real market conditions and evaluate its potential very quickly.


Above mentioned advantages of the USA market demonstrate that European Software companies shouldn´t be afraid of overseas markets, since it provides clear opportunities. There are some drawbacks though. There is one issue which Europeans usually face in going overseas is an access to up-to-date and real-time market intelligence and local resources which ideally should include in-depth assessment of potential consumers and competitors operating in the same sector (market share, key clients and sales dynamics).

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