ICT growth remains sturdy for OECD countries

The ICT industry outlook is promising in 2011 says the Organisation for Economic Cooperation and Development

ICT growth in OECD countries should reach four per cent in 2010 and even higher in 2011, according to the ‘OECD Information Technology Outlook 2010' report.

The research found that growth was down by six per cent in 2009 due to faltering macroeconomic conditions, but this has changed over the past year, and growth will continue into 2011.

According to the report, ICT-intensive employment currently makes up over 20 per cent of total employment in OECD countries, and vacancy rates are growing month on month.

Cloud computing is set to strengthen demand for ICT specialists, but this could have an adverse affect on employment overall.

"There is always a trade off with new technology that is set to increase efficiency," said Taylor Reynolds, directorate for science, technology and industry for OECD.

"Cloud computing will allow companies to have one source for all their data by moving into the cloud, but as a result this is likely to reduce IT employment in firms," he added.

According to the report, 50 per cent of global trade in manufactured goods takes place outside the OECD countries. It also points out that countries in the OECD have been increasingly specialised in the provision of ICT services.

About 80 per cent of ICT sector value-added in the OECD is generated by ICT services.

"This is one of the most interesting things to come out of the report. Manufacturing is increasingly being moved to other countries outside the OECD, such as China and South East Asia," said Reynolds.

"During the recession companies were looking for ways to become more efficient and save money. ICT faired very well during this, and the slight dip was a result of the manufacturing side," he added.

"OECD countries are getting out of the manufacturing business and services continue to grow. This is because services require a much higher level of specialisation, which means they are able to charge a higher margin."

Firms outside the OECD are also becoming major international investors. In 2009, 24 per cent of international mergers and acquisition deals in the ICT sector were initiated by firms from countries such as China, India and Russia.

There are 33 member countries of the OECD, including the UK, the US, Australia, Germany, Sweden and France.