IT is the Panacea to Recession- Study

DQI Bureau
New Update

The IDC report measures the contribution of IT to the economic

recovery forecasts the creation of 5.8 million jobs and 75,000 new

businesses over the next four years. It also expects the IT spending in

India to touch 1,643 billion INR (USD 37.6 billion) by 2013.

The IDC study, commissioned by Microsoft, 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 India specific findings yet again reiterate that we here are the
part of the solution, rather than the problem. India alone is expected

to create around 3,24,000 new jobs and more than 7000 new IT businesses

are expected to crop up. Moreover, IT's contribution to the country's

GDP is expected to rise from the current 1.8% to 2/8% by 2013.

The optimism surrounding India IT is the primary reason that is keeping
the investments from big players and companies around the world flowing

in. A research on employee confidence within the IT sector, done by

Kenexa corroborates this optimism. The research states that India is

one of the three countries where the employee confidence has registered

an increase since June. Brazil and China were the other two nations

that reported a rise in the employee satisfaction index.

While analysts are still cautious about the optimism and fearing that
it might be over-rated, the IT companies world over are looking towards

India to improve the look of their balance sheets. Even if

the  positive tide is under the scanner, India's potential as

a market for IT products and services can never be doubted!