Australian IT Service Industry Reinvents Itself Under The Impact Of The Internet, IDC Explains

NORTH SYDNEY — NOVEMBER 30, 2000 — According to a recent IDC report, the Australian and New Zealand market for Application Service Providers (ASP) is still in its infancy, but its value is forecast to increase from AU$8 million in 1999 to AU$184 million in 2004. In order to survive and prosper in today's increasingly competitive eBusiness marketplace it is obligatory for all organisations to have an effective means of access to the expanding portfolio of business-critical software applications designed to enable the adoption of an eBusiness trading model.


"Guaranteed access to solutions that are both speedy and easy, may well determine the difference between business success or failure", said Merv Langby, the chief analyst for services research at IDC Australia. "So too, within a constantly changing business environment, will be the freedom to rapidly and efficiently change the mix of software being accessed to ensure appropriate business responses to changing market conditions. Adaptability and speed of responses will increasingly underpin the level of customer service capability", Langby explained.

For the generally cash-constrained SME business strata, the avoidance of substantive capital investment in ever-changing technology infrastructure is especially beneficial. And, according to Langby, their endemic inability to attract and retain skilled IT personnel suddenly ceases to be a major problem.

"These are just a selection of the factors contributing to the evolving relevance of the ASP model. But, the ASP phenomenon represents just one slice of the overall fabric of the eBusiness model and the related opportunities offered for professional service firms" Langby said.

The IT services industry is, like any other, reinventing itself under the impact of the Internet. Supporting evidence is offered by IDC's most recent survey of the eBusiness services market. Survey findings showed that service suppliers are responding to the increasing complexity of customer requirements by offering an unprecedented range of end-to-end solutions.

These include business strategy, user interface design research and development, marketing and branding, application development and integration, network development and integration and site operations and management.

In order to address the Australian ASP phenomenon and the broader spectrum of eBusiness professional services, IDC today announced the launch of a market intelligence service called Australian Internet Services. The research scans the ever-broadening scope of eBusiness services, focusing upon the identification, defining, and assessment of market opportunity and the competitive environment. The ultimate aim of the program is to arm application service providers, system integrators, interactive firms, technology owners, management consultants and fusion service firms, with the necessary strategic market intelligence and analysis essential to the formation of strategic business and marketing plans.

For more information or to subscribe to the IDC Australia's Internet Services research program, please contact John Mlynowsky at (02) 9925-2237 or email

About IDC:

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community.

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