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The IT marked is on the mend
Posted: December 09, 2010
Now there is no doubt. The IT industry has improved. And it is going to look even better. Reason: IT is the basis for growth and innovation in the Western World.
A new report underline that the turnover of the IT market in the OECD countries will ultimately increase three to four percent during 2010. A progress compared with 2009 where the turnover decreased with six percent in these countries. Further, the report stresses that growth is expected to exceed four percent in 2011 but a return to the level of growth that was seen before the financial crisis remains unlikely.
The demand is increasing - also in the long term
In the long run demand for ICT will continue to rise, as the economies becomes "more intelligent" and the information and communication technology more and more popular.
- The fact that the ICT sector has not suffered the same extent as during the "dotcom crisis", suggests that ICT continues to become increasingly important for businesses and consumers, assesses OECD.
The organization believes that the ICT sector is better integrated in the "old" economy than it was in 2001. This means that ICT-related skills has become more important to promote growth in innovation and productivity and to ensure social inclusion.
No new short term investments
The report, OEDC Information Technology Outlook 2010 highlights that consumption in the public and private industry seems to remain weak in the coming months and therefore it seems unlikely with new short term investment in hardware or software in the OECD countries.
Further, the report describes that companies across the board have had a tendency to cut cost in IT services during the global economic downturn but in the recovery period several strategic activities have been maintained or increased.
Businesses are now focusing on consolidation and applications to maintain customers and market share. The report also confirms that companies tend to move their production to cheaper locations in the OECD countries and Asian.
The ICT sector within OECD has largely turned to services which today accounts for 80 percent of the total turnover in the sector.
Source: Computerworld
