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Overseas firms cutting into UK's online revenue, survey says

Nick Booth

A new survey says overseas companies are taking an increasingly large slice of the UK's online revenue, with a huge rise in the number of foreign enterprise clients in the last six months.

Since search engines reward businesses that host in the country they trade within, foreign companies are "flooding into our datacentres to win a share of the market", according to a statement put out by UKFast.

According to its latest six monthly figures, over 33% of the hosts of new enterprise level clients are overseas businesses. The US, Australia and Continental Europe are taking the lead.

Jones said, "home grown talent needs to be aware of the competition and be prepared to challenge it."

UKFast's analysis shows that the travel sector continues to consolidate a healthy share of the revenue. But gaming sites, financial businesses and e-learning will all have increased their presence before the end of the year, said the report, without providing more detailed analysis.

With more foreign competition, the level of professionalism in any sector will improve, argued Carsten Zorger, marketing director of German web host Strato, which is targeting the UK. To compete companies will have to provide better standards of service, whether they are offering security or indeed market information on the ISP sector.

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