This paper aims at investigating the factors that influence ICT adoption by small and medium enterprises in service industries of the southern area. A variety of internal and external factors have been identified as preventing many SMEs from implementing ICT. The study, which is reported in this paper, provides more in-depth information about the reasons why local SMEs are reluctant to adopt ICT for their business activities. Identifying the major reasons may help
the industry or government to provide appropriate information and support thus enhance ICT usage. Most of the empirical research is based on large companies, and SME in fact are characterized by the lack of knowledge about the real advantages that ICT could add to their business (King, 1994; Palvia, 1994). After the discussion of ICT usage, conclusion is drawn along with significant recommendations to improve ICT utilization amongst SMEs