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This article provides information about the reasons for growth in service sector:
In a case study conducted by Australian Government’s Department of Communication, Information Technology and Arts found that it is advantageous to adopt information and communication technologies by Non-profit organisations and communities in enhancing operational efficiency and capability, delivering services and support; and building communities, networks and connections ICTs helped enhancing operational efficiency and capability in terms of:
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i. Improvement in work processes in administrative and financial operations. This results in reduced processing time, less waste and reduced costs or reallocation of resources.
ii. Improved business information management, resulting in increased capacity, continual improvement of service delivery and decision-making.
iii. Improvement in the organisational culture surrounding the use of ICTs and there is better use of information. This helps empower staff to be innovative.
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iv. A planned or architected approach to ICTs implementation and management, such as centralisation of ICTs operations or using open or interoperable systems, facilitates.
v. Greater alignment of ICTs with overall strategic and organisational objectives; more robust, portable and flexible ICTs applications; and improved connections and engagement with external agencies.
vi. Collaboration, directly or through an intermediary, enables greater sharing of ICTs resources, training and knowledge and cost sharing.
vii. Creating new opportunities such as improved relationships with members or clients. It also enhances an organisations capacity for online engagement and access to a wider audience and interagency coordination, collaboration and networking.
viii. Providing wider community benefits, for example volunteers skills transfer, and enhances the role of nonprofit ogranisations as trusted intermediaries in the community.
ix. Overcoming social and geographic isolation and exclusion so there is greater access to and availability of information, services and support for clients and members.
x. Better access to ICTs facilities, training and support can empower clients.
xi. Improved outcomes for members such as the ability to keep in touch and share knowledge or skills with other members through online community networking.
xii. Voluntary member-driven organisations can provide ICTs training that is appropriate and relevant to their client group.
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xiii. With support, community organisations that previously felt overwhelmed by ICTs issues are developing confidence that they can move forward without losing control.
xiv. Ability of small organisations to collaborate and take advantage of economies of scale by, for example, jointly develops new services or applications, such as online donations.
xv. The capacity for ICTs cannot only provide direct benefits to organisations but also enable a multiplier effect, extending benefits to wider networks and communities.
In building communities, networks and connections (such as bonding bridging and linking social capital) ICTs helped in terms of:
i. ICTs can be effectively built into equity strategies targeted at the needs and interests of particular groups.
ii. Mixed models which combine face-to-face and online interaction can act as a transition strategy in communities with low levels of ICT skills and use.
iii. ICTs can be used as a tool to connect individuals to a range of community types, both wired and virtual, primarily designed to increase bonding social capital providing a sense of belonging, inclusion and community.
iv. ICTs can be used to create bridging social capital between geographically or socially diverse individuals forming a basis for collaborative work and understanding.
At the same time, they also encountered certain common barriers and challenges. The most common barriers and challenges encountered are:
i. Costs and lack of resources;
ii. Level of ICTs skills, knowledge and awareness by staff, management and board members;
iii. Ensuring sustainability;
iv. Lack of experience with ICTs (or ICTs readiness) within particular sectors and smaller organisations; and
v. The need for specific skills such as negotiating a contract, system implementation and change management present a significant challenge for many organisations.
Although these findings are related to the social sector services it is applicable to other service sectors too.