Small and medium businesses catch up with advanced infrastructure
Small and medium sized enterprises in South Korea will spend $1.65bn on high speed networking equipment this year, researchers predict.
The country was one of the first to introduce widespread fast broadband internet connections starting in the late 1990s, but many traditional small businesses are only now beginning to take advantage of the technology, according to research firm AMI-Partners.
Overall IT spending by SMEs in Korea is expected to grow 4.6 per cent this year, IDC Korea predicted in research published last month.
Although almost all medium-sized businesses, and 81 per cent of small businesses, in the country already have some form of internet access, around 30 per cent are still using dial-up despite the much faster alternatives.
"The internet is fast becoming synonymous with business growth and opportunities among SMEs in Korea," said AMI-Partners market analyst Avimanyu Datta.
"Korea is the most prominent emerging superpower in IT spending and particularly in internet adoption. Among small businesses in developing nations, 81 per cent is a fairly good penetration.
"AMI-Partners research has shown that the top IT concerns for Korea's SMEs are standardising PCs on the most recent version of an operating system, high-speed bandwidth and internet security."
Over three quarters of medium-sized businesses in Korea, and 61 per cent of small businesses, say they can strengthen customer relationships by using the internet for sales, marketing and customer support.
Half of the medium-sized businesses are prepared to change their business processes in order to enable efficient deployment of internet-based applications.
"The appreciation of the recursive relation between internet adoption and business process redesign will positively flatten the learning curve that most firms experience while adopting the internet for businesses," predicted Datta.
The potential market is so big that spending on faster connectivity by SMEs will account for 13 per cent of all IT and telecoms spending in the country this year.
"The deregulation of the telecoms sector by the government resulted in the formation of one of the best telecoms infrastructures in the world," said Datta. "This has helped fuel the enormous growth of the country's internet and wireless market."
Small and medium sized enterprises in South Korea will spend $1.65bn on high speed networking equipment this year, researchers predict.
The country was one of the first to introduce widespread fast broadband internet connections starting in the late 1990s, but many traditional small businesses are only now beginning to take advantage of the technology, according to research firm AMI-Partners.
Overall IT spending by SMEs in Korea is expected to grow 4.6 per cent this year, IDC Korea predicted in research published last month.
Although almost all medium-sized businesses, and 81 per cent of small businesses, in the country already have some form of internet access, around 30 per cent are still using dial-up despite the much faster alternatives.
"The internet is fast becoming synonymous with business growth and opportunities among SMEs in Korea," said AMI-Partners market analyst Avimanyu Datta.
"Korea is the most prominent emerging superpower in IT spending and particularly in internet adoption. Among small businesses in developing nations, 81 per cent is a fairly good penetration.
"AMI-Partners research has shown that the top IT concerns for Korea's SMEs are standardising PCs on the most recent version of an operating system, high-speed bandwidth and internet security."
Over three quarters of medium-sized businesses in Korea, and 61 per cent of small businesses, say they can strengthen customer relationships by using the internet for sales, marketing and customer support.
Half of the medium-sized businesses are prepared to change their business processes in order to enable efficient deployment of internet-based applications.
"The appreciation of the recursive relation between internet adoption and business process redesign will positively flatten the learning curve that most firms experience while adopting the internet for businesses," predicted Datta.
The potential market is so big that spending on faster connectivity by SMEs will account for 13 per cent of all IT and telecoms spending in the country this year.
"The deregulation of the telecoms sector by the government resulted in the formation of one of the best telecoms infrastructures in the world," said Datta. "This has helped fuel the enormous growth of the country's internet and wireless market."
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