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the IT companies, the term “PS” is used to cover two main types of services, which are
systems integration and IT consulting.
On the global level, systems integration services constitute 18% of the global IT
services market, while the consulting services constitute 5% of that market. Thus the PS
segment — as defined above — represent 23% of the global IT services market. In 2000,
the PS market reached approximately $97 billion, while the global IT market size was
approximately $2.1 trillion and the IT services size was around $429 billion (American
Chamber of Commerce, 2002).
Between 1999 and 2002, the global IT market’s average growth rate was 9%, while
the IT services segment was growing at a rate of 11.1% during the same period (American
Chamber of Commerce, 2002).
In 2000, the total IT market in Egypt was valued at $730 million, indicating a 17%
increase from 1999. In 2004, the IT market in Egypt is expected to reach $1.3 billion. The
IT services segment was valued at $210 million in 2000, representing 28% of the total
market size, where consulting services reached $29 million and integration services
reached $36 million. Thus the PS segment represents 30% of the local IT services market
and 8% of the local IT market. The PS segment is expected to reach $135 million by 2004,
with an average annual growth rate of 22% (American Chamber of Commerce, 2002).
Based on the high growth rate of the Egyptian IT market, “CITE” decided in 1997
to have a direct presence in the country. Therefore, “CITE” established an integrated
business operation in Egypt that covers its complete portfolio of products and services,
and where PS was one of the main units that started with a PS manager and nine PS
consultants focusing on complex IT solutions architecture and implementation such as
Internet solutions (service providers, security, etc.), high-availability solutions (cluster-
ing, disaster recovery, etc.), and data management solutions (centralized storage solu-
tions and backup solutions in multivendor environments, etc.). From 1997 to 2000, the
PS division was able to successfully deliver more than 60 PS projects per year, while
generating average revenue of $1.6 million per year. The operation in Egypt is part of a
larger regional operation in Dubai, United Arab Emirates (UAE), where the same model
is adopted in other countries in the region.
SETTING THE STAGE
In general, the PS industry, which includes systems integration services, legal,
accounting, and tax consulting, is knowledge intensive. What PS firms sell clients is their
knowledge and its application to specific client problems. A major justification for large
PS firms’ investment in knowledge management is that it gives them the capability to offer
clients the benefits of the whole firm’s experience, not just that of a particular client team.
This is only possible through the effective creation, diffusion, and use of professional
knowledge.
PS knowledge is as complex and difficult to manage as any other knowledge domain
of interest to organizations, and effective management of PS knowledge means meeting
a variety of challenges. There are multiple types of PS knowledge, including market
intelligence, best practices, methodologies, tips and tricks, and discussion around
specific engagements. PS knowledge is embodied in professionals — a mixed blessing.
While professionals are knowledge workers who are probably relatively comfortable