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Study: E-Commerce Set for 300% Growth Over Two Years

According to a new Deloitte & Touche Consulting Group study, the electronic commerce market is poised to experience 300% overall growth in the next two years.

While the survey finds that the Energy industry and Public Sector lead with current business transactions over the Internet at 23.3% and 20.4% respectively, the greatest penetration for e-commerce will be in the Financial Services industry, with a near 70% adoption rate expected within two years, driven by a dramatic increase in consumer transactions.

The two-year forecasts for percent of customer transactions in other industries are also encouraging: Consumer Business (43%), Public Sector (38.8%), Energy (37.2%), Manufacturing (34.1%), Health Care (33.3%).

"Until now, businesses have been hesitant to adopt e-commerce because of security concerns or the perception that their customers simply aren't using it to buy products and services," said Doug Downing, a Partner at Deloitte Consulting.

"Now, companies are coming to the realization that security will always be an issue--but that it's less of a concern than missing out on a vital new channel that could provide a tremendous competitive advantage."

The Deloitte Consulting 1998 Global Survey of Chief Information Executives polled over 1,000 CIOs in six major industries in 25 countries. It provides a snapshot of the present and a projection of what the IT landscape will look like in two years, based on CIOs' current and projected technology use.