Revenues in the worldwide Internet services market will earn acompound annual growth rate of nearly 60 percent in the next fiveyears and pass 78 billion U.S. dollars by 2003, according to areportreleased Tuesday.
Worldwide revenues in the emerging market grew 71 percent in 1998to reach 7.8 billion U.S. dollars, said U.S. research firmInternational Data Corporation (IDC).
In addition to becoming more prominent, said IDC explaining therapid market expansion, Internet projects are becoming moresophisticated and complex, demanding different skills ofprogrammers,designers and business strategists. Because companies are havingextreme difficulties locating and hiring employees with theseskills,they are turning to outside service providers to fulfil their needs.In addition, corporations are under increasing pressure to executeprojects faster and with greater reliability, which is also causingthem to turn to outside providers.According to IDC, the United States currently spends more thanother regions on Internet services. In 1998, it accounted for morethan half worldwide spending, with 4.6 billion U.S. dollars. WesternEurope is the second-largest market and will maintain a five-yearcompound annual growth rate of 67 percent between this year and2003.Unlike traditional, established markets where brand, reputationand years of experience play an important role in the purchasingdecision, in today's Internet services market issues such asflexibility and creativity are important. Therefore, IDC said, theemerging market offers a relatively even playing field, allowing forsome of the new breed of Internet service firms to capture marketshare, although large, traditional information technology servicefirms currently dominate the market.
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