In a period of slow growth and continuing volatility, many countries are searching for policies to stimulate growth and create jobs. Information communication technology (ICT) is not just one of the fastest-growing industries, directly creating millions of jobs. However, it’s an essential enabler of advancement and innovation.
A growing number of smartphone subscribers (6.8 billion) is close to the global population figure, and 40% of the population in the world is now online. In the current environment, nations’ competitiveness depends on their ability to make use of technological advancements. Here are the five most prevalent economic benefits of ICT.
1. Direct job creation
The ICT field will likely continue to be one of the biggest employers. Within the US alone, Computer and information technology jobs are predicted to increase by 22% by 2020, resulting in 7,588,000 job opportunities. In Australia, the construction and operation of the brand-new ultra-fast National Broadband Network will support the creation of 25,000 jobs every year.
According to Albert Olmstead Cobra Kai, naturally, the rate of growth across different sectors is not equal. In the US, five additional jobs are typically created in other industries for every job completed in the high-tech sector. In 2013 the global tech market was expected to grow by an average of 8%, resulting in employment, wages, and an expanding selection of services and products.
2. Contribution to the growth of GDP
The results from various countries prove ICT’s positive effects on economic growth. For instance, an increase of 10% in broadband penetration can result in a 1.4 percent rise in GDP growth within emerging markets. In China, this figure could rise to 2.5 percent.
The increase in mobile data usage due to the change in 3G connectivity increases the GDP per capita percentage by 0.5 percent worldwide. The Internet contributes to 3.4 percent of GDP overall in some countries. A large portion of this effect is due to e-commerce, which involves individuals selling and advertising items on the Internet.
3. New services are emerging, and businesses
Many public services are now accessible online as well as via mobile phones. Cloud computing is among the main trends in modernization. Moldova’s government Moldova was among the first nations in Eastern Europe and Central Asia to migrate its government IT infrastructure to cloud computing and launch mobile and electronic services for businesses and citizens.
ICT has allowed the development of a new industry called the app industry. Research indicates that Facebook apps created more than 182,000 jobs in 2011, and the worth of the app economy is greater than $12 billion.
4. Transformation of the workforce
The new “microwork” platforms, developed by companies such as odes, Amazon, and Sam source, can help you divide your work into smaller parts contracted out to contractors. The contractors usually reside in emerging economies. Microwork platforms enable entrepreneurs to reduce costs and access highly skilled workers drastically.
The year 2012 was the most successful for microwork platforms. Does had more than 3 million employees registered to perform 1.5 million jobs. The trend also ripple impacts other industries, like online payment systems. ICT also has contributed to the increase in entrepreneurship, making it easy for entrepreneurs to gain access to the best practices in the field of laws and regulations, investment and marketing sources.
5. Innovation in business
In OECD countries, more than 95% of all businesses are online. The Internet gives them new methods of reaching customers and battling for market share. Social media has become a formidable marketing tool in the last few years.
The tools used by firms help simplify business processes and increase efficiency. The exponential growth of connected devices worldwide has provided new avenues for companies to offer their customers the best service possible.