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IT will lead to global economic recovery

Research in 52 countries, including the UK, forecasts the creation of 5.8 million new jobs and 75,000 new businesses over the next 4 years and it says IT will be the catalyst for this recovery.

 
 

The findings of a report commissioned by Microsoft, which was designed to measure the contribution of IT to local economies, reveal that computer investment will be a major contributor to economic resurgence in the coming years.
 

The IDC study, published in the fourth quarter of 2009, set out to investigate the contribution of IT to gross domestic product (GDP), job creation in the IT industry, the formation of new companies, local IT spending and tax revenues in 52 countries representing 98 per cent of total worldwide IT spending.

This research concluded that in the UK, Microsoft and its ecosystem of local partners, vendors and service providers will be a major catalyst of local economic growth and opportunity, during both the current economic difficulties and recovery.

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.

Steve Ballmer
CEO, Microsoft

 
 


Steve Ballmer, CEO of Microsoft commented: “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. 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.”

Key findings for the UK's IT sector

Areas of this report specific to the UK market and the role that IT would play in the recovery of the UK economy included the following predictions:
 

Prediction... IT spending in the UK would reach £50.2 billion in 2009, and until 2013 is expected to grow 1.8% a year, compared to GDP growth of -0.1% a year.

Prediction... The IT market will drive the creation of nearly 2,500 new businesses and 78,200 new jobs between the end of 2009 and the end of 2013. Most of the new companies will be small and locally owned organisations, and the jobs will be highly skilled, high-quality jobs. That represents growth of 1% a year from now until 2013, while total employment will shrink by -0.7%.

Prediction... In 2009, local partners in the Microsoft ecosystem will generate more than £17.8 billion in revenues for themselves. To generate these revenues, they will invest £6 billion in development, marketing, training and sales into the UK economy.

Prediction... The Microsoft ecosystem, defined as local companies that develop and/or sell products that run with or on Microsoft software, or that service and distribute Microsoft software, is a critical economic catalyst in every country where Microsoft operates. For every pound that Microsoft generates in 2009, local companies in this ecosystem will generate £8.84.

 

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