Spending on IT seen to create more jobs

THE projected increase in information technology (IT) spending in the next four years would create more jobs in the Philippines, according to Information Data Corp. (IDC).

In a study, IDC said IT spending would grow at an annual rate of 8.5 percent from 2008 to 2013. For this year, IT spending is estimated to hit P126 billion.

IDC said the IT spending growth rates means that employment in the industry and of IT professionals in IT-using organizations will rise by 34,000 jobs in the four years starting 2009 when the workforce is expected to hit 103,000.

The research firm said 29 percent of IT employment will be software-related, which contributes about 8 percent of total IT spending this year.

The study cited companies in the Microsoft ecosystem, which employs 20,000 people.

The Microsoft ecosystem in Philippines includes those companies that sell personal
computers, servers, storage and smart handheld devices running Microsoft software; software vendors that write applications that run on Microsoft platforms; resellers that sell and distribute these products; and service firms that install and manage Microsoft-based solutions, train consumers and businesses on Microsoft products and service customers for their applications.

As a group, IDC said companies in the Microsoft ecosystem in the Philippines will generate more than P56 billion in revenues this year.

For every peso Microsoft will make in Philippines this year, companies in the local system will make P12.11, IDC said, adding that IT-related activities will generate P13 billion in taxes. –Darwin G. Amojelar, Senior Reporter, Manila Times