Global Economy and Its Impact on Information Technology

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Global Economy and its impact on Information Technology

The global economy gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business.” This increase in globalization has created many new opportunities, such as niche markets, and requires everyone to keep up with globalization in order to stay competitive. The trend of becoming transnational firms has developed in to a worldwide ‘race-to-the-bottom’ where companies are so focused on staying competitive that they often outsource production to developing countries with the lowest labor and economic standards. With the advancement of the internet and technology, there will likely be an increase in the reduction of trade barriers. If the Global Economy will continue to expand, it will play the vital role to change the career and its field in the field of information Technology, having positive as well as negative impact on the economy of different countries like China, India and USA. There is no question that technology, particularly information technology, has driven the success of the global economy over the last 15 years. The new study, conducted for Microsoft by IDC, the international market research firm, projects that this year, worldwide spending for computer and networking hardware, software and services will for the first time exceed US$1 trillion, and will exceed $1.4 trillion in 2005. The study also found that worldwide IT spending grew by more than 10 percent annually during much of the past decade -- a pace faster than the global economy overall. These results provide evidence that IT has a significant and growing role in the global economy. But, there is a question that, Is global economy really destroying US Economy? Many of us believe that this is the main cause of outsourcing. According to the US News, The U.S. economy has lost nearly 1...
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