New Study Reports on Positive Contributions of IT Sector to Global Economic Recovery
Research from 52 countries including Canada forecasts the creation of 5.8 million new jobs worldwide and 75,000 new businesses over the next four years.
Mississauga, ON - October 5, 2009 - Global IT research firm International Data Corporation (IDC) and Microsoft Corp. today released the results of global research measuring the positive impact of the information technology (IT) industry's contributions to local economies.
The IDC study, commissioned by Microsoft, investigates the breadth and depth of 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 Canada, Microsoft's ecosystem of local partners, vendors and service providers are a catalyst for local economic growth and opportunity, during the current economic difficulties and both its long and short term 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," 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."
Key Findings on the IT Industry for Canada
- Spending on IT in Canada will exceed $39 billion in 2009. From the end of 2008 to the end of 2013, IT spending will grow 1.9 per cent each year, compared to GDP growth of 0.9 per cent a year.
- The IT market will drive the creation of more than 1,000 new businesses and over 84,000 new jobs between the end of 2009 and the end of 2013. Most of the new companies will be small and locally owned organizations, and the jobs will be highly skilled, high-quality jobs.
- In 2009, local partners in the Microsoft ecosystem will generate $13.5 billion in revenues for themselves. To generate these revenues, they will invest $4.5 billion in development, marketing, training and sales in the Canadian 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 dollar that Microsoft generates in 2009, local companies in this ecosystem will generate $8.43 CDN.
- Companies in the Microsoft ecosystem employ 116,000 people and IT-using organizations employ 216,000 IT professionals who work with Microsoft software or products and services based on it. Together, those employees account for 39 percent of total IT employment in 2009 in Canada.
"Partnering with Microsoft has contributed to Infusion's growth over the years," said Alim Somani, President, Infusion Development. "During the dot.com bust and now through this recent recession, our partnership with Microsoft has provided us opportunities in new markets, with new technologies and with new customers and has contributed to our success. Being part of the Microsoft ecosystem enables us and supports us which furthers our growth as a company worldwide."
"Over the past 20 years, we've seen transformative power in how investments in IT innovations foster economic growth," said James Milway, Executive Director, Institute for Competitiveness and Prosperity. "Continued innovation and investment in information technology will fuel the economic recovery and contribute to the growth of employment and new businesses in Canada."
Additional Findings About the Software Industry for Canada
- Software spending represents nearly 20 percent of Canada's total IT spending.
- Software drives employment in the IT industry, as 62 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.
About IDC Methodology
This study applies IDC's Economic Impact Model, which assesses the IT industry's 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 Canada Co.
Established in 1985, Microsoft Canada Co. is the Canadian subsidiary of Microsoft Corporation (Nasdaq "MSFT") the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Microsoft Canada provides nationwide sales, marketing, consulting and local support services in both French and English. Headquartered in Mississauga, Microsoft Canada has nine regional offices across the country dedicated to empowering people through great software - any time, any place and on any device. For more information on Microsoft Canada, please visit http://www.microsoft.ca.
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For more information, press only:
Meg Sinclair
Media Profile on behalf of Microsoft Canada Co.
(416) 504-8464 / Meg.Sinclair@mediaprofile.com
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