London: October, 05 2009: Microsoft CEO Steve Ballmer gives the CBI annual lecture, unveiling the results of the 2009 IDC Global Economic Impact Study.

Software giant Microsoft commissioned a major study of global IT from US research firm International Data Corporation (IDC) and the main finding is that the information technology (IT) industry will create 5.8 million new jobs and more than 75,000 new businesses over the next four years. The study claims that despite a drop in IT employment around the world, software-related employment figures grew by 4 percent. The IT market will drive the creation of nearly 150 new Irish businesses between now and the end of 2013, according to IDC.

The expected growth rate for IT employment of 3 percent a year is more than three times the rate of growth of total global employment and a strong indicator that investing in IT will contribute to economic recovery and growth.

“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.”

The IDC study 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 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.

The study looked at trends between now and 2013, in IT and software spending in the 52 surveyed countries.

The Economic Impact of Innovation

Key findings for Ireland:

• IT spending in 2009 will be  €2.9 billion ($4.3 billion). From the end of 2008 to the end of 2013, IT spending will grow 0.4% a year, compared to GDP growth of -1.3% a year.
• IT-related activities will generate  €4.8 billion € ($7.1 billion) in taxes in 2009. Over the next four years, IT-related taxes are expected to increase to nearly  €5 billion € ($7.2 billion).
• That spending growth means that employment in the IT industry and of IT professionals in IT-using organizations will rise by 8,000 jobs in the four years from the end of 2009 to the end of 2013, up from a 2009 base of 148,000.
• That represents growth of 0.4% a year from now through 2013, while overall employment is expected to shrink.
• Software drives activity in the services and distribution sectors, as well as in IT-using organizations, which means that while spending on packaged software will be only 19% of total IT spending in 2009, 52% of IT employment will be software-related.
• The IT market will drive the creation of nearly 150 new businesses between now and the end of 2013. Most of these companies will be small and locally owned organizations.