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(Last updated: 12 Jul 2007)
Trends and opportunities
The market
The Hong Kong Government is one of the largest purchasers of IT products and services and has moved rapidly to support Internet development. It is determined to make Hong Kong the Asia-Pacific Internet content hub. Several key projects such as Cyberport, Science Park and Electronic Service Delivery are testimony to this.
Internet developments (Internet Services Providers Association) have made a tremendous impact on online trading and exporting in Hong Kong. Both government and private sector organisations are embracing this medium.
In the private sector, different industry portals, such as steel, building materials, healthcare, entertainment, and food are enabling e-commerce and trading online. Banks are also launching e-banking services.
Hong Kong has developed into a leading business, financial and e-commerce centre and has a vibrant software industry. It has some of Asia’s biggest and most sophisticated computer installations and is one of the most sophisticated and successful telecommunication markets in the world.
Most local software developers are small firms with less than 20 employees but they manage to produce competitive customised software to support local and foreign clients. There are approximately 660 independent software vendors (ISVs) and about 1800 packaged software products, (Hong Kong Software Information Centre) available in Hong Kong. About 25 per cent of those are developed by local ISVs.
A dynamic trend in Hong Kong is that of companies building e-versions of their business. A diverse range of companies are forming strategic partnerships to build business-to-business (B2B), business-to-customer (B2C), and portals to explore new ways of attracting customers, generating revenue and streamlining operations. This trend is now occurring across many sectors such as real estate agencies, banks, and entertainment outlets working with telephone operators. Some of Hong Kong's utility companies such as China Light and Power, Hong Kong & China Gas have diversified into the Internet business by utilising its physical infrastructure in Hong Kong.
Core characteristics of Hong Kong’s telecommunication infrastructure and application make it a leading hub in the region. For example, Hong Kong is the first city in the world to have a fully digitised fixed telephone network and leads the region in terms of international call time and the penetration of telephone lines, mobile phones and fax machines. There are:
- Nine fixed carrier licensees
- Five mobile operators
- Over 130 Internet Service Providers
- Around 171 licensed international value added network service (IVANS) operators providing value-added services such as email box, store-and-forward fax and electronic data interchange
Opportunities
Hong Kong offers a favourable environment for the development of Internet and e-commerce. Since the beginning of the first commercial Internet Service Providers in 1993, Internet use among business and households has rapidly increased.
Australian IT companies have not been as active in Hong Kong as those from the USA, Canada or Europe. However, the success of Australia’s Octopus Card - the world’s largest smart card based application for public transportation – in Hong Kong and other Australian success stories are driving a greater interest in Australian suppliers.
There are many opportunities for Australian companies to provide solutions in all industries and sectors, both public and private.
Value added services are also in demand with potential areas in:
- Finance
- Telecommunications - locational based services and applications
- Education - online training courses, content development
- Digital entertainment - mobile games
- IT outsourcing
- Training
According to the Centre of Computer and Microelectronics Industry Development (CCID) of the Ministry of Information Industry (MII), the increasing computerisation in both the private and public sectors makes the mainland China market of huge potential.
Key directions for software-related development in the coming years includes multimedia, online database services via Internet, brokerage software, automation simulation system and game software.
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