An examination of the effects of changes in information technology, specifically with reference to business, may not have been contemplated by businesses and government leaders until recently. A new report from the World Economic Forum, “The Effects of Changes in Information Technology on the Global Economy,” reveals that almost all sectors of the economy will experience positive changes in the next two to five years. These include a major increase in software and hardware development spending, a reversal of the recent trend of shrinking computer industry employment, and a rapid rise in demand for professionals in the information technology field. The report goes on to predict that more than half of the projected increases in the global economy between 2021 will come from the IT sector alone.
One of the primary reasons why these changes are occurring is because of the need for more affordable, capable information technology equipment to improve efficiency and reduce costs. The increasing need for business executives and other managers to obtain digital equipment or computerized services has also contributed to the current crisis. As the demands for information technology rise, so does the price of IT-related goods and services.
Changes in the way businesses use technology and in the way they store and retrieve information has also had an impact on the economy. Online retailing and other online shopping opportunities have also created significant economic opportunities for manufacturers, service providers, and consumers. The ability to use the Internet for both routine and emergency purchases has increased consumer spending and helped boost commerce.
Although the effects of changes in information technology are global, the U.S. economy appears to be suffering the most from the expanding use of IT. One reason for this is the fact that most IT professionals work in the information technology field. As the U.S. economy becomes more developed and businesses grow more globally, there is less demand for IT professionals who reside in the United States. This trend will only continue as domestic businesses grow and continue to need the skills of international IT professionals.
- The effects of changes in information technology are also felt at the governmental level.
- Many public officials are concerned about the new technologies being introduced into the marketplace.
- These officials are trying to come up with policies and laws that will protect the consumer, businesses, and governments while still permitting the rapid expansion of IT.
- One policy that has been proposed attempts to restrict the ability of any government entity or employee to purchase or require the creation or modification of a particular computer system.
Some businesses and government agencies have tried and failed to create policies that would address the changing needs of consumers and businesses. The Department of Defense recently conducted a study comparing changes in information technology between 2021. The study found that the changes were staggering, especially when comparing the costs of maintaining traditional methods of communication with the costs of using Internet based software programs. According to the Department of Defense, “The department lost a total of 22 billion dollars due to the inability to effectively use information technology in the war effort.” These are the types of costs that are likely to continue to affect businesses and government agencies for years to come.