October 5, 2009
IT Spending To Boost Global Economy
The process of global economic recovery is likely to be encouraged by the growth of IT industries, according to a new study released Monday.
IT research firm International Data Corporation issued a report on Monday commissioned by Microsoft Corp.The study took data from 52 countries to show that the expected growth rate for new jobs in the IT sector are expected to increase at 3 percent a year, which is more than three times the growth rate of total employment.
IDC and Microsoft noted that this growth would translate into an estimated 5.8 million new IT jobs and more than 75,0000 new businesses globally over the next four years.
"Although forecasted growth of IT spending is muted since the advent of the global recession, it is pegged at 3.3 percent per year between now and the end of 2013," the study found.
"In this fundamental economic reset, innovative technologies will play a vital role in driving productivity gains and enabling the creation of new local businesses and highly skilled jobs that fuel economic recovery and support sustainable economic growth," said Microsoft chief executive Steve Ballmer.
"Countries that foster innovation and invest in infrastructure, education and skills development for their citizens will have a major competitive advantage in the global marketplace."
The study determines the impact of the IT sector's contribution to gross domestic product, job creation in the IT industry, employment in the software sector, formation of new companies, local IT spending, and tax revenues in 52 countries, representing 98 percent of total worldwide IT spending.
The study refers to the "Microsoft ecosystem", which is defined as local companies that develop and/or sell products that run with or on Microsoft software, or that service and distribute Microsoft software.
IDC found that the Microsoft ecosystem is "a critical economic catalyst" in countries where Microsoft operates.
In 2009, companies in the Microsoft ecosystem are expected to generate more than $535 billion in revenues for their local economies.
"IT spending growth is a good sign as we come out of the recession," Microsoft Corporate Affairs communications manager Scott Selby told AFP.
The study also found that software spending is increasing at a faster rate than IT spending "“ 4.8 percent a year between 2008 and 2013, compared with 3.3 percent.
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