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Government committed to supporting local software industry

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The Government is committed to facilitating the development of the local software industry, the Acting Director of Information Technology Services, Mr Stephen Mak Hung-sung, said today (August 12).

Taking part in a panel discussion at the Pearl River Delta (PRD) Software Industry Forum, Mr Mak exchanged views with participants from Guangzhou, Shenzhen, Zhuhai and Foshan on the role of government in promoting the software industry.

Organised by the Hong Kong Computer Society and co-organised by the Commerce, Industry and Technology Bureau, the forum brought together government officials, software industry players and information technology (IT) practitioners from Hong Kong and cities in the PRD.

The forum provided updates on the outlook of the software industry in the Mainland and developments in product testing and enterprise certification. It also included experience sharing and panel discussion sessions on industry development activities among the PRD cities and the role of government in facilitating these.

"The SAR Government has taken forward various initiatives to facilitate the growth of our software industry," said Mr Mak.

To expand the local market, the Government has pursued a vigorous outsourcing strategy to launch its e-government projects. IT contracts with a total value of some $1.7 billion were outsourced last year, representing a 12% increase when compared with 2001.

At present, close to 90% of government IT projects are outsourced. Various measures, such as the lowering of tender deposits, have been adopted to help small and medium enterprises (SMEs) bid for government contracts.

Mr Mak said the Government had been active in promoting the use of IT in the SMEs and the community, thereby increasing the demand for the IT market locally. Besides organising training sessions, exhibitions and seminars, the Government launched the "IT Easy Link for Businesses" this July; providing SMEs with information on IT applications via a free hotline and face-to-face consultations.

To help SMEs jump start their IT applications, the Government this year teamed up with the industry to launch the "DO IT!" Campaign, furnishing low-cost IT products and services.

The Government has also introduced a range of support services to assist IT vendors in opening up new markets. These services include business platforms, market research and business matching.

New opportunities have also arisen with the signing of the Closer Economic Partnership Arrangement (CEPA), as Hong Kong and the Mainland agreed to strengthen co-operation on electronic commerce and electronic government, Mr Mak said.

Since high quality products and services are the key to enhancing competitiveness, the Government has been aggressively promoting the adoption of international standards by the local software industry. This includes the setting up the Capability Maturity Model Assessment Grant to provide financial assistance to IT firms seeking such qualification.

Other established funds including the Innovation and Technology Fund, the Applied Research Fund and various SME funding schemes provide additional support for the software industry in research and development, promotion and training development where applicable.

The Government had made significant progress in building up world class IT infrastructure facilities to support the industry, Mr Mak noted.

Citing flagship projects including the Cyberport and the Science and Technology Parks, he said the IT and technology clusters would not only facilitate information exchange but also promote co-operation and synergies among the clusters.

Other important infrastructural advances like the Electronic Transactions Ordinance, the Public Key Infrastructure, and the Interoperability Framework are also conducive to higher levels of e-commerce activities and hence demand for software products and services.

Mr Mak said Hong Kong and the cities of the PRD each possessed distinctive but complementary competitive advantages in developing their software industries. He was confident that by strengthening their relationship and engendering collaborative opportunities, Hong Kong and the PRD cities would stand to achieve mutual economic benefits.

End/Tuesday, August 12, 2003

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