Archive - Year 2001

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Speech by Mr. Alan Wong, Director of Information Technology Services at the "Official Launch of the Hong Kong Application Service Provider Industry Consortium" on
27 September 2001

Dr. Wong, Ladies and Gentlemen,

Good afternoon! It is my honour to be invited to officiate at the Official Launch of the Hong Kong Application Service Provider Industry Consortium (HKASPIC). I am also excited to witness the establishment of an association of the leading companies in the Application Service Provider (ASP) industry, which will not only promote the ASP industry in Hong Kong but also accelerate the use of Information Technology (IT) in the local business community, in particular our Small and Medium-sized Enterprises (SMEs).

In the past few years, advances in IT have brought about huge changes in the way we live, communicate and do business. IT has already become an important tool for enhancing the competitiveness of the enterprises and the economy as a whole. And IT is becoming an integral part in doing business. In the next few years, perhaps e-business will become just 'business' and e-commerce will become just 'commerce' as naturally they have already implied an 'e'.

The Hong Kong SAR Government fully recognizes the importance of using IT to retain our competitive edge and to drive overall economic growth. To this end, we have undertaken a number of initiatives under the Digital 21 Strategy.

To encourage investment and competitiveness in the industry, we have adopted an extensive liberalisation policy and are now proud to say that our telecommunications infrastructure is amongst the best in the world. Our mobile penetration rate is the highest in Asia and amongst the highest in the world.

To provide a secure framework for conducting electronic transactions, we have enacted the Electronic Transactions Ordinance (ETO) in early 2000.

To lead by example in the use of IT, we have put our Government services on-line through the Electronic Service Delivery (ESD) Scheme. With the development of ESD, Hong Kong is branded as "a platform for a glimpse of the possibilities of e-government in Asia".

By implementing various initiatives under the Digital 21 Strategy, the Government aims to, among other things, create a conducive environment for the development of IT in Hong Kong. However, Government's efforts alone are not enough. Support and participation of the private sector are equally important. We have organized awareness seminars and exhibitions to promote the use of IT applications to encourage the use of IT in the business community, in particular SMEs which are the backbone of our economy.

It is encouraging to see that our enterprises have taken initiatives to actively exploit new opportunities in the use of IT in order to maintain their competitiveness. However, lack of resources and expertise in building IT solutions could hinder the enterprises' initiatives. I am pleased to see that the ASP model has emerged as one of the foremost global trends in the delivery of IT application services to help in addressing these issues.

Conventionally, the major options of application systems development and implementation are either done through in-house or contract-out services with the host computers housed within the enterprises. By applying the ASP model, owners of the enterprises do not have to take care of the operations of their computer operations such as hardware, software, networking, etc., especially when such technologies are developing at a fast pace. Enterprises, especially the SMEs, will be relieved from dealing with the developing technologies and will be able to focus their attention on their core businesses.

The fastest way to guarantee making the right decisions is to let the experts make them for you. Enterprises can leverage on the ASP's technical expertise to obtain existing or new packaged applications rapidly while keeping the cost at an affordable level. Moreover, with the revolutionary way of delivering the application services over the network on a subscription basis, enterprises will be able to enjoy the benefits of flexibility, scalability and upgradability. And more important to the SMEs, ASP model helps to make the cost of using IT more predictable and manageable through the scheduled payment schemes. In some ways, ASP model is another form of application outsourcing giving enterprises a viable alternative to procuring and implementing complex systems themselves.

With the increasing popularity of the ASP model and the concerted efforts of your members in the ASP industry, the Hong Kong Application Service Provider Industry Consortium will certainly be one of the most influential associations in the IT sector in Hong Kong.

To build Hong Kong into a leading digital city, we need the continuous support from various organizations. I look forward to a strong partnership with the Consortium.

Finally, I wish the Hong Kong Application Service Provider Industry Consortium every success in your future endeavours.

Thank you.

- ENDS -

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