LONDON, May 7 /PRNewswire/ --     Senior executives in internationally dynamic software firms say that the
current economic crisis will not significantly affect their European business
models, according to The Software Report 2009. Dublin is the most positively
perceived European location; the South East, London, Ile de France, West
Nederland, Bavaria and Stockholm are considered to be the strongest
cost/quality options for locating a European software facility. Northern
Ireland has been the most successful regional location for software
development centres between 2001 - 2008.

The report, by FDI consulting and research specialist Oxford
Intelligence, sheds light on the European business development strategies of
software firms. "Software continues to be a prime source of FDI into Europe,
but 2009 will see a continued decline before recovery begins in 2010" said
Michel Lemagnen, Research Director, Oxford Intelligence.

CEOs of international software companies say they are finding it harder
to meet their growth targets and competition is more intense with consequent
pressures on pricing and profit margins. Cost factors are likely to become
more important in location selection. "Operations in non-profitable markets
could be relocated into centralised European sales functions or even shut
down in the case of in-country offices", added Lemagnen.

In 2008 the number of software FDI projects into Europe declined by 17
per cent, with the US falling by around 32 per cent. The decline has mainly
hit sales and marketing investment whilst R&D projects have been more
resilient - a positive indicator of the role Europe continues to play as a
location for high-end, new development work.

Oxford Intelligence forecasts an 11 per cent decline in software FDI
deals in Europe in 2009 and a modest growth of five per cent in 2010, led by
the UK, which will be the first to benefit from the upturn.

Companies are increasingly looking at a broader set of European locations
in particular for software development centres. The drivers behind this are
three-fold: market growth potential in emerging markets; the search for
talent in relation to technical software development skills; and Costs.

"Software is growing at a faster rate than the IT market - executives are
generally optimistic about future European strategies and it's a positive
sign that 88 per cent see their preferred method of expansion as organic
business growth" Lemagnen added

"The Software Report 2009: International Investment Strategies and
European Benchmarking Study" April 2009: http://www.oxint.com/press.cfm