Irish firms are continuing to invest heavily in e-commerce despite the downturn in the Internet sector and the threat of economic recession a study has revealed.
According to the fourth annual survey on e-commerce in Ireland, published by Accenture, 79 per cent of senior Irish executives said they planned to increase their eCommerce spending over the next 12 months.
The survey also found that 87 per cent of those interviewed claimed "they were now more inclined to experiment with new e-commerce technologies including wireless commerce and data warehousing."
However the survey claims the reasons companies are investing in e-commerce are significantly different from a year ago. "Their primary focus is no longer the acquisition of new customers, but the deepening of customer relationships through the delivery of more tailored services," it said.
The study found that 65 per cent of Irish executives are pursuing e-commerce to stay ahead of their competitors while 45 per cent are pursuing e-commerce to help reduce operating costs.
Thirty five per cent of executives surveyed expected to have gained a competitive advantage through the use of e-commerce within three years.
The survey found that Irish businesses were still enthusiastic about e-commerce, with 65 per cent believing that it is necessary for their organisation’s survival. Notably, 81 per cent of Irish executives believe that e-commerce has been increasing rewards to successful companies.
Speaking at the launch of the report, Accenture’s Mr Sean Shine said: "It may come as a surprise to many observers that e-commerce is alive and well and thriving in Ireland."
Mr Shine said: "It is encouraging that so many Irish executives plan to continues investing in new forms of eCommerce over the next 12 months."
"In the face of deepening economic gloom, most Irish business are using e-commerce to consolidate their competitive position and prepare for the future. Those who hesitate will be left behind when the economy picks up", he said.
