On Your Mark, Get Set, Go: IDC Says the Race to Provide eMarketplace Services Has Begun

FRAMINGHAM, MA, AUGUST 8, 2000 – What began as a slow crawl to enter the emarketplace services industry in 1999 has turned into a flat-out sprint this year. According to IDC, service providers from all walks of life including systems integrators, management consultants, Internet service firms, and pure-play emarketplace services firms are racing to the finish line to be among the first to provide these services.


"The increased speed of movement on the part of service firms is directly related to the amount of opportunity within the emarketplace services industry," said Dr. Leo Lipis, senior analyst for IDC's eMarketplace Services research program. "The development, deployment, and management of emarketplaces represent a fast-growing opportunity, and all types of services providers are expanding and aligning their offerings to be better positioned to meet the needs of emarketplace clients."

According to IDC, the consulting and implementation provided to deploy the emarketplace represent only a small piece of an enormous opportunity. "Not only does an emarketplace need to be integrated with numerous participants, but those participants need to have the front-end emarketplace integrated with their own back-end systems," Lipis said. "For the service firm, this represents an opportunity to derive ongoing revenue from one initial contract."

Types of services needed by emarketplace clients include support services, business strategy, marketing and branding, user interface design, research, and development, application development and integration, network development and integration, and site operations and management.

As in the Internet services market as a whole, emarketplace service firms are working hard to meet the needs of startups. Some are accepting equity as a payment, and others are providing incubator services.

According to IDC, the service providers who win the race and are among the first to build and operate emarketplaces will be adorned with lucrative awards.

"Being an early leader in building and operating emarketplaces will provide competitive advantage in acquiring subsequent business. When we spoke with vendors, they said experience was one of their top three criteria when choosing an external service provider to help develop their emarketplace," said Pooneh Fooladi, an analyst with IDC's eMarketplace Services research program. "The service firms that build and operate the emarketplaces will have the advantage in providing integration services to them and their participants."

The above information comes from IDC's recent report, eMarketplace Services: Capitalizing on the Opportunity to Deploy, Integrate, and Operate eMarketplaces (IDC #B22423). This report analyzes developing trends in the emarketplace services market and looks at the direction the market is moving toward. The report discusses the market's competitive landscape and the types of vendors competing for market share. It also makes recommendations on how vendors can successfully compete. In addition, the report provides end users with executive insight by profiling five of the first emarketplaces. To purchase the report, contact Jim Nagle at 1-800-343-4952 at extension 4549 or at jnagle@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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