Giga Information Group: Net to Slash Business Overheads Globally.
Published:
11 August 1999 y., Wednesday
By 2002, conducting business online will save companies around the world an estimated USD1.25 trillion, according to a report by the Giga Information Group. This compares to total savings of USD17.6 billion in 1998. As can be expected, the US accounted for the majority of business cost savings last year, USD15.2 billion of the total global savings. This is expected to increase to USD600 billion by 2002, a phenomenal increase in dollar terms but a significant reduction in percentage terms. Typically, once implementation costs have been accounted for, cost-savings produce greater profit margins more than an increase in sales revenue.Internet-based costs savings are expected to see US businesses record between USD360 billion and USD480 billion by 2002. While the margins will not be as high as in the US, this trend will also be reflected globally, according to the report.
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