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The Information Technology Services Department (ITSD) is gaining momentum to achieve its new mission of promoting the wider use of information technology (IT) in the community which will bring more business opportunities for the local IT industry.

Speaking at the luncheon of an information technology industry roundtable summit meeting today (April 29), the Director of Information Technology Services, Mr Lau Kam-hung, said that the aim of promoting the wider use of IT in the community was for Hong Kong to thrive and compete internationally.

To fulfil this mission, ITSD provides support to foster the development of the local IT industry and to promote and facilitate the wider use of IT in the community.

"ITSD works in close partnership with the local IT industry, academic and other professional bodies to encourage the cross-fertilisation of ideas and to promote the use of new and emerging technologies within the community," said Mr Lau.

Citing a few examples, Mr Lau pointed out that ITSD regularly organised industry liaison meetings in conjunction with a number of industry support organisations such as Hong Kong Productivity Council and Hong Kong Computer Society to maintain close contacts with the industry.

"We have jointly organised the Tripartite Forum on Commercialisation of IT Research Results with Hong Kong Venture Capital Association and Hong Kong Information Technology Federation," said Mr Lau.

"This is to enable IT researchers from local universities to meet with investment professionals and IT industry practitioners to promote the commercialisation of their IT research results," he added.

Together with both government and non-government organisations, ITSD has been organising a series of seminars since June 1999 to encourage local companies, especially small and medium-sized enterprises (SMEs), to embark on e-commerce which will help them enter into new markets and enhance competitiveness.

With a view to creating a market of sufficient size to encourage the further development of the local IT industry, ITSD has adopted an outsourcing strategy for the provision of IT services since 1999.

"It is the target of the Government to have two-thirds of all new government IT services outsourced by the end of 2001," said Mr Lau.

"In the fiscal years of 1999/2000 and 2000/2001, the total expenditures on outsourced government IT services are $770 million and $730 million respectively."

Mr Lau noted that the size of the expenditures was encouraging to the local IT industry.

To encourage more local IT companies, especially SMEs, to actively participate in the Government's IT projects, ITSD has organised seminars to introduce to the local IT industry the government IT tender procedures, the SME Loan Scheme and the facilitation measures for bidding government IT tenders.

In supporting the local IT industry, the Government has also played a vital role by facilitating the development of advanced technology and in strengthening the private sector's capability to develop innovative ideas for commercial use.

"The Innovation and Technology Fund injected with $5 billion by the Government provides essential financial support to projects which will contribute to innovation and the technology upgrading of the local manufacturing and service industries," said Mr Lau.

"In addition, the Government provides venture financing through the $750 million Applied Research Fund to the private sector to assist companies undertaking technological innovative projects with real commercial potential," he continued.

Both the Cyberport and Hong Kong Science Park which are high-tech projects in Hong Kong will create an environment conducive to the fruitful exchange of ideas and technology.

"Another initiative which will boost support for Hong Kong's industries in developing high value-added products is the establishment of the Applied Science and Technology Research Institute (ASTRI)," said Mr Lau.

Targeted for completion in 2004, the ASTRI will play the role of carrying out high-quality mid-stream research and development projects for transfer to the industry sector.

"The Growth Enterprise Market established last year (1999) serves as an alternative mechanism enabling emerging companies to raise funds for business development," he said.

Mr Lau concluded that, under the full support rendered by the Government, the local IT industry would have recognised that there were tremendous business opportunities.

End/Saturday, April 29, 2000

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