IDC Releases Findings of a New IT Economic Impact Study at Microsoft’s Government Leader’s Conference

FRAMINGHAM, MA – APRIL 16, 2002 – IDC today announced that John Gantz, the company's chief research officer, will present highlights of a new study, The IT Economic Impact on Local Economies, at Microsoft's invitation-only Government Leaders Conference in Seattle. The study addresses the key benefits of information technology (IT) to the health and success of local economies in 28 countries worldwide.

 

The study results provide analysis and forecasts of IT spending, job creation, tax revenues, and company formation related to IT investments. The countries analyzed include 14 emerging economies and 14 developed economies and account for more than 90% of IT spending worldwide in 2001.

According to Gantz, "We know from history that the IT industry generally grows 2-5 times GDP growth in a country, but now we know what that means in terms of hard benefits to individual countries. For example, of the 14 emerging countries we studied, IT-related employment between 1995 and 2001 grew 50% faster than that in developed countries. This is one of the reasons IT employment grew on average over 7% a year through 2001."

Key findings from the study:

Worldwide IT industry is currently more than one trillion dollars and expected to grow to more than $1.5 trillion by 2006. Spending on services and software will grow twice as fast as spending on hardware;

Employment is divided about one-third industry participants (hardware manufacturers, software firms, services firms, and channel companies) and two-thirds IT professionals in IT-using organizations; about 70% of industry jobs are in the service and channels sector;

Tax revenues for governments from IT-related activities have grown more than 40% since 1995 and should grow another 40% by 2005;

Asia is expected to lead IT spending growth with China projected to grow the fastest at a compound annual growth rate of 26.8% by 2005.

"We are pleased that Microsoft chose IDC's Global Research Organization to conduct a project of this magnitude and importance," said Kirk Campbell, chief executive officer of IDC. "We were able to draw from our experts, located globally, to obtain an accurate view of local markets around the world and to provide historical trending data to illustrate the growth and impact of IT on development in international markets."

Gantz will present these findings at Microsoft's Government Leaders' Conference, on April 16 in Seattle where international officials will share their experiences in using technology to empower citizens, improve services and stimulate economic development.

To find out more about this study, contact Amie White at 508-935-4653 or awhite@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com. IDC is a division of IDG, the world's leading IT media, research and exposition company.

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