CAP Gemini has announced the creation of a new 1,000 strong e-business unit, expanding to more than 2,000 by the end of next year, to develop the company's e-commerce business.

Mr Bob Scott, director of marketing and alliances, Global e-business unit, said that the move was aimed at consolidating its operations, increasing its market share and competing with new companies who were filling the emerging market space.

He said: "Financial analysts are saying that the market is growing at between 50 and 60 per cent so we need to achieve growth rates of 100 per cent plus if we are to gain market share."

Mr Scott said it was not worried about established competitors such as Andersen Consul ting, but new web integration companies like Razorfish and Agency.com in the US and ICON medialab in Sweden. The new unit will be operational from January 3rd, 2000.

It is designed to compete with specialist Internet companies with the company recruiting the specialised consultants and IT experts both internally and externally. The company said that e-business is now its priority for all its group operations and expects up to 50 per cent of its revenue, estimated at €4.3 billion in 1999, will come from e-commerce.

Mr Scott said that the move underlined the commitment of the company to the development of this area and said that in today's market companies can never move fast enough.

Cap Gemini employs 170 people in Dublin and more than 40,000 in 20 countries worldwide.