The future of the worldwide Internet commerce procurement applications market looks extremely promising, growing from $147 million in revenues in 1998 to $5.3 billion by 2003, according to a study issued yesterday by International Data Corporation.
The study, "Internet Commerce Procurement Application Market Review, Forecast and User Trends, 1998-2003," surveyed the top 40 Internet commerce procurement vendors and more than 75 end-user organisations that use these applications. According to IDC, application users will jump from 600,000 in 1999 to 250 million by 2003. Businesses running these applications will save up to $103 billion on sales worth $1.375 trillion by 2003, IDC said.
Internet commerce procurement applications are resulting in lower costs and overall efficiency for businesses, IDC said. For example, Seattle-based software vendor Visio implemented a Web-based procurement system last year and processing costs dropped from $113 per purchase order to $6, IDC said.
With these applications, businesses are buying goods and services from suppliers and trading partners, the research firm said.