The Forecasted Development of Information Technology Industry through the Year of 2013 - Assignment Example

? Information Technology Forecast Introduction Since the introduction of information technology, human wayof life has changed dramatically. According to Myers (1998), the industry evolved from the first giant calculators that were digitally designed to process and operate figures and later long drawn out to digitize other heavily transaction-oriented events, for instance, airline misgivings. But up to 1980s, almost all the computer associated events rotated around interactions between two, namely, a computer and a human being (Myers 1998). Information technology seems to be growing into a top global industry and is said to continue growing at a rapid pace in the immediate future. This paper discusses the forecasted development of information technology industry through the year of 2013. Industry Overview Davis (1989) defines information technology as the use of telecommunication equipment and computers to keep, retrieve, transmit and manipulate data mostly in the field of a business or any other activity. Davis (1989) adds that this term is mostly used as a replacement for computers and everything that has to do with them, including other information delivery technologies, such as television and telephones. In the business setting, Information Technology Association of America defined information technology as the studying, scheming, developing, instigating, applying technical support, as well as handling computer-based information systems. People who work in this field are responsible for network administration, installing and developing software and even planning and managing an organization’s life cycle, under which software and hardware is upheld, upgraded or exchanged. It is through such processes the information technology is being developed in such a way that it enhances productivity and efficiency of employees and organizations. Indisputably, introduction of information technology within the contemporary business environment has had great impact on human daily routine. Chesbrough and Spohrer (2006) assert that information technology demand is driven by the high rate of rapid technology improvements. The profit of a modern company heavily depends on technical know-how, innovative services as well as real advertising by means of hi-tech. Chesbrough and Spohrer (2006) add that large companies have advantages over small companies in that they have broad global reach as compared to small companies that may choose to compete by specializing in market niche. The small companies may as well choose to partner with the big ones to enable their services are being rendered at a more productive rate. The business worth of information technology depends on the mechanization of business procedures, providing information in making decision, linking the businesses with customers and providing other productive tools to increase efficiency. Organizations, businesses, and individuals continue to employ information technology features and systems within the operations with the main aim of increasing efficiency and effectiveness. There is no doubt that since the coming of information technology many business operations, processes, and activities have considerably changed. The world continues to spend a lot of money to adopt and implement information technology in daily life at all levels. Amongst the aspects that the world spends so much money on in respect to information technologies there are devices, data system centers, enterprise software, information technology services, and telecom services, as illustrated in the following chart. The following charts show how global information technology has spread over the last two years. World spending in the year 2012 was found to amount at $3,588 (billions of US dollars) The global spending on information technology after one year was found to have grown significantly. Research shows that the world spent almost a total of $ 3,737 (billions of US dollars). World spending in the year 2012 was found to amount at $3,737 (billions of US dollars). Comparing the two charts, it is believed that in the next five years there will be a gigantic growth in the information technology industry. Financial Forecast of Information Technology Industry Using a simple trend analysis, Benjamin and Wigand (1995) found that according to financial crisis experienced in the year 2010, the economy of the globe has steadily recovered. Many states lowered taxes and implemented funding programs. They also found that the introduction of smartphones and other devices took information closer to people. Apart from that, enterprises applied IT investments resulting to request in personal computers. Due to this, Benjamin and Wigand (1995) say that there was a 10% increase compared to 2009. In the year 2011, financial results were expected to improve in the Americas as well as Europe. Nonetheless, electronics and information businesses will still make use of IT devices in global heating and energy ingesting (Benjamin & Wigand 1995). The rapid use of IT is all about computers and other stations that were however expected to contribute a 6% of global production by the businesses in 2011. Ndhleve (2012) asserts that on April 3, 2013 report released by IDC Financial Insights gave an update of the world risking to software management, hardware as well as services for 2013-2017. In addition,general global IT spending risk technologies keeps growing but at a reduced rate of 5.45% annually compared to the previous forecast. The new research shows that IT spending may reach about $80 billion by 2017. Critical Assessment of the Forecast In the early years, there was introduction of personal computers that at this moment of time are being replaced by small computers like laptops which has actually brought a lot of revenues to the industry. Despite all these technology still introduces other forms of devices that can be used for information. In as late as 2010, the use of local area networks has reduced rapidly paving ways for new technology devices with the use of wireless networks to convey information. It is anticipated that the information technology industry revenue will keep increasing over the coming 5 years at a higher pace compared to the recent years. IT Development as applied to other Business and Organizations Developing and profiting from information technology simply depends on the protection of intelligent stuff that would make a company profit from the new technologies. IT has become an essential part of everyday business plan. Frye (2007) explains that IT has played a big part from multi-national corporations to small business. The main reason for using computer technology in an organization or even business can be best looked by how human beings use it to make profit. Nevertheless, the use of information technology within businesses and organizations has changed various aspects, processes, and procedures, which have consequently led to improved productivity, efficiency, and effectiveness. Information Technology and employment Gregory and Swagel (2006) describe how the introduction of technology has affected the employment rate, both positively and negatively. Advocates of IT on the other hand finger out the fresh types of opportunity created due to the growth of technology. They give an example as in the field of programming and many more. Early 2000 was a period of fast-tracking technology in conjunction with standing employment advance. Employment opportunities degraded by 1% in the past span likened to the 20% development in 80s and 90s (Gregory & Swagel, 2006). The increase of robotics has made service workers rate reduce hugely with an example at the airline reservations. Research also shows that as information technology trends increase, a number of job opportunities arise and, therefore, information technology has contributed both positively and negatively towards human employment. Conclusion In conclusion, this paper clearly states an overview of information technology industry and its predictable growth over the coming five years. The prediction was calculated based on the trend analysis that reviewed the past two years of global industry presentation. I noticed that information technology leadership is highly important in any business or organization and, therefore, agree that technology should continue taking the forefront. The paper concluded with a brief discussion of how the development of information technology industry affects other businesses and organizations, as well as how it affects employment. References Benjamin, R., & Wigand, R. (1995). Electronic markets and virtual value chains on the information superhighway. Sloan Management Review (Winter, 1995). Chesbrough, H., & Spohrer, J. (2006). A research manifesto for services science. Communications of the ACM, 49(7), 35-40. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340. Frye, D. W. (2007). Information Technology and Its Role in the Modern Organization. Network Security Policies and Procedures, 1-9. Gregory Mankiw, N., & Swagel, P. (2006). The politics and economics of offshore outsourcing. Journal of Monetary Economics, 53(5), 1027-1056. Myers, B. A. (1998). A brief history of human-computer interaction technology. interactions, 5(2), 44-54. Ndhleve, S. (2012). Agricultural public spending growth and poverty linkage hypotheses in the Eastern Cape Province of South Africa (Doctoral dissertation, University of Fort Hare). Newman, J. D., & Turner, A. P. (2005). Home blood glucose biosensors: a commercial perspective. Biosensors and Bioelectronics, 20(12), 2435-2453. Read More