More Buying than Building Applications, IDC Canada Finds

Toronto, ON, September 23, 1998 — A majority of Canadian companies are more likely to buy and implement packaged software products rather than buy and modify or build a custom application from scratch, according to recent research

from International Data Corp. (Canada) Ltd. A majority are also turning to outside help for some level of assistance in replacing or implementing those applications.

These findings are two found in "Demystifying Application Investment and Implementation Decisions," a recent report published as part of IDC Canada's Technology Integration Panel Study.

According to survey respondents, more than 57 per cent of the largest application investment projects were reported as packaged solutions that are bought and implemented. Less than 20 per cent of organizations are building

custom applications from the ground up.

"Although there are still pockets of custom development happening, these findings point to software vendors generally meeting the base application needs of most Canadian companies," says Julie Kaufman, Senior Analyst, Software, at

IDC Canada.

Some of the other key findings in the study, which also compares application investment between Canada and the United States as well by company size, include:

Although 80 per cent of companies surveyed claimed they were using an outside provider in some capacity for application implementation, the roles of outside providers vary.

The highest priority for Canadian organizations investing in IT applications is accounting/financial software packages. Management/end-user data access rates as a high second and third-largest investment priority for companies of all sizes.

The leading criteria for choosing a systems integrator was technical expertise, followed by knowledge transfer and industry knowledge.

IBM was by far and away the leading systems integrator in terms of mindshare and ability to assist with application implementations.

IDC's study is based on the results of its Canadian Technology Integration Panel Study (TIPS) survey conducted in December 1997 and January 1998. The sample size of the Canadian survey was approximately 250 organizations. IDC stratified the surveys by company size and industry. IDC also compared its Canadian results with its U.S. TIPS survey also conducted in the fourth quarter of 1997.

For additional information about IDC?s Technology Integration Panel Study, please contact Julie Kaufman at 416-369-0033, or jkaufman@idccanada.com.

About IDC Canada

Located in Toronto, IDC Canada provides IT market research and consulting to Canada's leading high technology firms. International Data Corporation, headquartered in Framingham, MA, has a global network of more than 300 analysts

in approximately 40 countries, and services more than 3,900 high-tech customers worldwide. IDC is the industry's most comprehensive resource for information about worldwide IT markets, products, vendors and geographies. IDC's Worldwide

Web site (http://www.idc.com) and IDC Canada's Web site (http://www.idc.ca) contain additional company information, recent news releases and offer descriptions of recent research.

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