One of the most important barrier to entry to the ICT sector is the high investment new firms need to do when the want to enter the sector. There are several great investmentscompanies need to do when entering the sector.
The first one is the technological investment. If an ICT firm wants to be competitive it has to do a great economical effort because technology evolves veryquickly and firms need to be able to provide the newest solutions and latest innovations to their clients. In this sector the part of technology investments is bigger than, for example, an industrialone. The companies competing in the ICT world need to really be able to keep constant innovation so that their services don’t get obsolete.
The second is the one regarding the human resources neededto compete in the sector. The services provided by ICT companies are very complex and need really competent people. In this kind of firms knowledge is a very important variable. In fact it is adeterminant key factor of success. Firms need a well trained crew that can enable the company to keep constant innovation and provide the clients with the best solutions for their needs. The ICT firms mustset up processes in order to keep the staff trained and informed of the latest innovations and technological advances. It is also important to have the best professionals you can find and then it isvery important to be able to keep them. In this kind of sectors there is a great tendency of high staff turn-over so firms must have the economical resources to be sure that they can recruit a reallycompetitive crew.
Another important barrier to entry is the Brand Image. Companies that want to enter this sector must be aware of the importance of the image. In this sector there are really bigcompanies with a well settled brand image. Firms such as Microsoft, IBM and Accenture compete in the sector. These are large firms with a lot of history on their backs and credibility. New firms need to...