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New Study Reports on Contributions of IT Sector to Global Economic Recovery
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- Research from 52 countries including India forecasts the creation of 5.8 million new jobs worldwide and 75,000 new businesses over the next four years
- IT spending in India to reach 1,643 billion INR (USD 37.6 billion) by 2013
October 12, 2009
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New Study Reports on Contributions of IT Sector to Global Economic Recovery
| New Delhi, India, October 12, 2009 — Global IT research firm International Data Corporation (IDC) and Microsoft Corp. have released the results of global research measuring the information technology (IT) industry's contributions to local economies.
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| The IDC study, commissioned by Microsoft, investigates the contribution of IT to gross domestic product (GDP), 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 research found that in India, Microsoft and its ecosystem of local partners, vendors and service providers are a major catalyst of local economic growth and opportunity, during both the current economic difficulties and recovery.
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| "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 Steve Ballmer, CEO of Microsoft. "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".
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Key Findings on the IT Industry for India
- Spending on IT will reach 989 billion INR (USD 22.6 billion) in 2009, and is expected to grow to 1,643 billion INR (USD 37.6 billion) by 2013 for a compounded rate of growth of 11.8 percent. By 2013, IT as a percentage of GDP will increase from 1.8 percent to 2.3 percent.
- The IT market will drive the creation of nearly 7,000 new businesses and 3,24,000 new jobs between the end of 2009 and the end of 2013. Most of the new companies will be small and locally owned organizations.
- In 2009, local partners in the Microsoft ecosystem will generate more than 420 billion INR (USD 9.6 billion) in revenues for themselves. To generate these revenues, they will invest 134 billion INR (USD 3.1 billion) in development, marketing, training and sales in the Indian economy.
- 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 INR that Microsoft generates in 2009, local companies in this ecosystem will generate 10.95 INR
"Over the past 20 years, we have seen transformative power in how investments in IT innovations foster economic growth," said Robert D. Atkinson, Ph.D., founder and president of the Washington, D.C.-based Information Technology and Innovation Foundation. "Continued innovation and investment in information technology will help jump-start recovery from the current recession and will significantly contribute to the growth of employment and new businesses".
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Additional findings about the Software Industry for India
- Software spending represents 12 percent of India's total IT spending.
- Software drives employment in the IT industry, as 45 percent of IT employees are engaged in creating, distributing, installing or servicing software.
Full results of the study can be found at http://microsoft.com/economicgrowth.
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About IDC Methodology
This study applies IDC's Economic Impact Model, which assesses the IT industrys impact on job creation, company formation, local IT spending and tax revenues in addition to assessing Microsoft’s partner ecosystem. The study's spending figures accounted for hardware, software, services and data networking expenditures by consumers, businesses, governments and educational institutions within each country. Tax revenue figures were based on potential VAT or sales tax revenues from the sale of hardware, software or services, as well as business and personal income taxes and social taxes. IT employment included the number of people employed (full-time equivalent) in hardware, software, services or channel firms, and those individuals managing IT resources in an IT-using organization (e.g., programmers, help desk, IT managers). All data was cross-checked against published information and census data available from government sources and validated by local government officials. A report on IDC's methodology is available at http://microsoft.com/economicgrowth. |
| About Microsoft
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
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For further press information, please contact:
Rikhil Seth
Consulting Associate
Genesis Burson-Marsteller
Mobile: 9810647600
Email:rikhil.seth@bm.com
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Sabah Hamid
Manager – Corporate PR
Microsoft India
Tel: 0124-4158000
Fax: 0124 – 4158888
Email: sabah@microsoft.com
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| Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.
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