How Information Technology is Boosting Australia's Economy
How Information Technology is Boosting Australia's Economy
Information Technology (IT) or Information Communication Technology (ICT) sector is one of the fastest growing industries in the world. The Australian ICT Sector includes computer services, telecommunication services, and some selected manufacturing and wholesale trade industries. It helps to create jobs, products/services and exports. The industry also has an impact on the productivity of virtually all other industries.
The ICT industry has undergone significant change since the Australian Beaureu of Statistics last conducted a survey in 1996. The total income for the sector in June 1999 was almost $63billion that’s and increase of 28% when compared to June 1996.
Video and computer games are a big factor in the rise. Australian companies like UbiSoft are beginning to break into American and Japanese controlled market. UbiSoft’s hit game Dark Reign sold worldwide and was voted as the strategic game for ’97/’98. Codemasters is another example; they have been able to break into the English market with their hit games Shane Warne Cricket and Colin McRae Rally. This is also quite helpful for other Australian companies because it boosts credibility of Australian developers and makes other Australian games more readily accepted on the market.
Although software development is up hardware development has taken a dive, with earnings slipping from nearly $2 billion down to just over $1.1 billion. This drop in earnings has caused severe job cuts in this sector, from 5,700 jobs down to 2, 400 that is nearly a 57.2% in job losses from 1996.
The industry is now benefiting from services, such as Computer Consultancy. Revenue from 1996 has jumped up almost 46% in 1999. Another service that is benefiting the industry is Data Processing. With jobs increasing in number. In 1996 employment was 5,291 jobs to an increase in 1999 of 7,174 jobs. That is an increase of 35.6% over 3 years.
There are many positive impacts of the ICT industry on the economy. For example it boosts Australia’s exports around the world. In 2000 New Zealand increased its purchasing of Australian ICT products and services by a staggering 13.8%. It is creating many jobs for Australia’s unemployed. In the computer services sector alone there has been massive 35.2% increase in the amount of people employed.
One Negative impact of the ICT industry on the economy is job losses. Even though it creates jobs ICT also causes some job losses, such as Electric Cable...