Many countries are seeking policies to stimulate growth and create jobs in a period of slow growth and volatility. Information communication technology (ICT), which is one of the fastest-growing industries, directly creates millions of jobs and is an important enabler for innovation and development, is also one of the most important.
The 21st century will be Information Technology driven. India is considered a global knowledge powerhouse and is the center of global attraction. IT services, IT-enabled services (ITES), managed IT services, eCommerce (online business), and software and hardware products are all part of the IT industry.
Any organization needs IT-based services to improve productivity, efficiency, and economic growth in today’s competitive market. Information Technology has not only contributed to the country’s economic growth but also made governance easier and more accessible.
Information technology has made it easier to access government services and information. Information technology has made it easier to manage and deliver government services such as education, health, and consumer rights, among others.
Transparency is a key benefit. Our economy will thrive exponentially if the IT industry is there to create millions of jobs. We will be able to compete with China in all sectors and gain access to the global market through our IT sector growth.
With 40% of the population already online, the number of mobile subscribers (6.8 billion), is close to global population figures. The competitiveness of countries in this new environment is dependent on their ability to leverage new technologies. These are the five most common economic effects of ICT.
1. Direct Job Creation
The ICT sector is one of the most important employers and will continue to be so. Computer and information technology jobs in the USA are expected to increase by 22% between 2010-2020, creating 758,800 jobs.
Australia will create and manage the super-fast National Broadband Network, which will support 25,000 jobs each year. The growth in different sectors is not uniform. Five additional jobs are created each year in the US for every job in high-tech. The global tech market is expected to grow by 8% in 2013, creating new jobs, increasing salaries, and offering a wider range of products and services.
2. Contribution To GDP Growth
Different countries have found evidence of the positive impact ICT has on growth. A 10% increase in broadband penetration can be associated with an increase of 1.4% in GDP growth in emerging market countries.
This number can rise to 2.5% in China. Globally, the GDP per capita growth rate has increased by 0.5% due to the doubling of mobile data usage caused by 3G connections.
In some countries, the Internet contributes 3.4% to the overall GDP. E-commerce is the most important driver of this effect. This refers to people selling and advertising goods online.
3. New Services And Industries Emerge
Many public services are now available online or via mobile phones. Modernization is a key trend. Cloud computing is one of its key features. The government of Moldova was one of the first in Eastern Europe and Central Asia that migrated its IT infrastructure to the cloud. It also launched mobile and e-services for citizens and businesses.
The app industry is a new sector that ICT has allowed to emerge. According to research, Facebook apps have created more than 182,000 jobs and the total value of the app economy is over $$12 billion.
4. Transformation Of The Workforce
Companies like Samasource, Amazon, and oDesk have created new “microwork” platforms that allow tasks to be broken down into smaller components that can then easily be outsourced to contract employees. Contractors are often located in emerging economies.
Microwork platforms enable entrepreneurs to drastically reduce costs and gain access to skilled workers. In 2012, oDesk had more than 3 million registered contractors and performed 1.5 million tasks. This trend has had ripple effects on other industries such as online payment systems and legal services.
The rise of entrepreneurship has been aided by ICT, which makes it easier for entrepreneurs to find best practices, legal and regulatory information, and marketing resources.
5. Business Innovation
More than 95% of businesses in OECD countries have an online presence. They have new opportunities to reach customers and compete for market share through the internet. Social media has become a powerful marketing tool over the last few years.
Companies can use ICT tools to improve their efficiency and streamline business processes. Businesses can now offer new services to their customers’ thanks to the unprecedented rise in connected devices around the globe.
6. E-Commerce
Electronic commerce has brought about incredible economic changes over the past decade. Amazon and other large commercial retailers dominate the landscape.
Entrepreneurs have used technology to change the way we do business and how we transact it. Individual businesses can now use Amazon’s platform for transactions.
The internet has enabled electronic commerce or e-commerce to fuel many changes and create a new economy. E-commerce allows you to buy and sell products online.
7. Redefining Organizational Boundaries
E-commerce removes all barriers, such as language, culture, time, geography, currency, and language. Imagine how the 2020 pandemic would have developed if people couldn’t buy everything online.
Organizational boundaries have been redefined by information technology. Internet transactions, such as payments, can be made. It is possible to strengthen and streamline relationships with customers, suppliers, partners, and other parties. Electronic inventory can be maintained. Electronically, purchase orders can be easily exchanged between companies.
8. Marketing And Privacy
E-commerce allows for personalized advertising and sales. Websites can also monitor customer behavior without their knowledge or consent. Cookies allow businesses to track customer movements. Cookies are small data files that are stored on the user’s computer when they visit a website using a browser. Cookies provide information to the company about pages visited, items viewed, dates visited, and other details.
9. Globalization
Globalization refers to the expanding movement of capital, goods, and services across national borders. The global economy has been transformed by global commerce. One-fourth of all goods or services worldwide are exported to other countries.
Technological innovation is one factor that has accelerated globalization. Companies can now communicate in real-time with their partners, employees, and suppliers via the Internet, software, hardware, internet, fiber optic cables, and many other technologies. Technology has made it easier and more affordable to transport goods from one location to the next.
Technology is transferred to globalization. Globalization means that the latest innovations are quickly spread and made available to everyone around the world. Consumers will see a decrease in prices due to globalization. Moving operations overseas, where labor is cheaper, can help keep costs down.