One of the US industries with the highest growth rate in the recent times is the IT industry. The US IT industry comprises of the hardware, software and other applied services. The country records 40% of the global spending in the production of IT products and services.
Increase of US IT Industry Expenses
The United States of America has recorded an increase in the spending on ICT or information and communication technology products since the year 2000. The spending of the government has increased over 21 percent in this industry. The government has recorded a spending of $1.13 trillion in the year 2005. According to statistics, member nations of G-8 have displayed a CAGR of 4.5% between the year 2000 and 2005.
Contribution of IT Industry to US Economic Growth
The IT industry of US contributes immensely to the economic growth of the country. According to the records of the Commerce Department of the State, the IT industries contribute approximately 8% of the GDP of USA. After the 2001 recession in US, the industry contributed 0.1% to the growth rate in 2002. However, the following year the industry’s contribution rose to 0.8% points of the estimated 2.9% growth.
US IT Expenses
In 2004, consumer sector spent maximum amount on the services and products of IT industry. This was followed by financial and business services sector, government and wholesale and retail trade.
IT Industry Legacy
Although planted firmly in the mainframe of software and computers, US IT industry leaves a legacy whose future is dependent on the understanding the concept of convergence. It has been noticed in the 1990s, that the advances in the industry in specific areas such as processing power, usage and software functionality were the important factors that led to the reduction of prices. Consequently, services were readily available for larger business groups and a wider range of people. The world wide communications and knowledge sharing was triggered off through access to internet. There were plenty of mergers and acquisitions in US IT industry.
Information Technology Association of America (ITAA)
Information Technology Association of America (ITAA) is a representative body, which includes leading IT industries and trade groups across the world. It may be noted that 90% of ICT goods and services produced by members of ITAA are sold all over North America.
Information Technology Industry Council
Information Technology Industry Council is one of the important names in USA information technology industry. It is a representative body of major high-tech companies of USA and it works to formulate public policies.