IT to contribute 2.3% to GDP by 2013: Microsoft study

Information Technology, as a pecentage of the gross domestic product (GDP) is expected to increase from the present 1.8 per cent to 2.3 per cent, by 2013. According to a new study by Microsoft, the IT market will drive the creation of nearly 7,000 new businesses and 324,000 new jobs between 2009-end and 2010-end, thus contributing significantly to the growth of the country.

Commissioned by Microsoft, the study conducted by IDC, investigated the contribution of IT to GDP, job creation in the IT industry, employment in the software sector, formation of new companies and local IT spending in 52 countries. This represents 98 per cent of the total worldwide IT spend.

In India, the study found, Microsoft’s local partners in India will generate revenues of over Rs 42,000 crore ($9.6 billion). They will invest Rs 13,400 crore in development, marketing, training and sales to generate the revenues. It went on to add that local companies will generate Rs 10.95 for every Re 1 spent on buying Microsoft products.

“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 in a statement.

“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,” he added.

Indian organisations invest 12 per cent of their IT budget towards buying software products. The Microsoft study said, IT spending in India is expected to reach Rs 1,64,300 crore ($37.6 billion) by 2013, from the Rs 98,900 crore ($22.6 billion) in 2009, at a compounded rate of 11.8 per cent.