$20 Billion in User Expenditures Will Shift to Internet-Related Outsourcing Over Next Five Years.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 17, 1996--By the end of the year 2000, users will have spent $20 billion on Internet- related outsourcing services.

New outsourcing services opportunities will be in areas such as management of Intranets, operation of web servers, firewall security services and maintenance of web page content.

INPUT's study, "The Impact of the Internet on Outsourcing and Processing Services" predicts a compound annual growth rate (CAGR) for the market of over 100% during the next five years. Although penetration varies from industry to industry, the data in the report demonstrates that the Internet is rapidly becoming ingrained in corporate activities.

Independent of the dramatic growth of outsourcing markets due to the impact of the Internet, the U.S. outsourcing market will increase from a $19 billion market in 1995 to a $42 billion dollar market by the year 2000. With a CAGR of 16% and forecast expenditure of $16.3 billion in 2000, Application Operations will remain the area of greatest outsourcing expenditure. However, the fastest growing area is Business Operations which will jump to almost $3 Billion and grow at 30% CAGR.

INPUT conducts continuous research on the worldwide information services markets, software and the Internet. For more information about INPUT's Internet and Outsourcing research call [phone], fax request to Erika Meir at 415/391-3966 or e-mail [e-mail] via the internet. -0-

Note to Editors: For further information about this topic or others, please contact Erika Meir. Editorial review information is available and/or direct analyst contact will be arranged. Phone: [phone]. Fax: [phone]. E-mail: [e-mail].

CONTACT: INPUT

Erica Meir, 415/528-6329