ACS Releases Latest Snapshot of ICT Industry
Monday 7 April 2003 - The Australian Computer Society (ACS) has released the latest Information and Communications Technology (ICT) Industry Trade Update.
Sponsored by the ACS and written by Professor John Houghton of the Centre for Strategic Economic Studies (Victoria University), the Update found that 274,000 people were employed in the ICT industry in 2001, accounting for nearly three per cent of Australia's working population. It revealed that ICT sector jobs continued to be relatively highly paid, with average wages of $58,951 per annum in 2000-01.
A sector dominated by small business and by men
Almost 96 per cent of the specialist ICT businesses operating in Australia in 2001 employed fewer than 20 people. The vast majority (73 per cent) were information services businesses, which grew in number by 18 per cent per annum between 1993 and 2001.
ICT industry positions were dominated by males, with 67 per cent of jobs held by men compared to less than 56 per cent across the broader employment spectrum. No fewer than 79 per cent of the industry's computing and technical (professional) positions were held by men.
ACS President, Richard Hogg said the ACS was aware of the gender imbalance in the ICT sector and was spearheading a number of initiatives to help address it.
"We operate a number of Women in Technology (WIT) groups, recently endorsed a comprehensive policy to encourage more women into ICT, and are providing scholarships for female tertiary students through the ACS Foundation," he said.
High levels of foreign ownership
Mr Hogg said the data showed foreign ownership was extensive, with multinational companies accounting for 43 per cent of all employment and earning 60 per cent of industry income.
"People working in foreign-owned firms earned a higher average income than those working for Australian-owned businesses, reflecting the fact that the Australian companies tended to be smaller than their multinational competitors. In fact, ICT businesses with majority ownership from the United States employed almost as many people as Australian-owned businesses in 1999," he said.
The new Update revealed that the market for ICT products and services in 2000-01 was worth $61.5 billion (excluding content). Communications services accounted for 49 per cent, hardware for 25 per cent and information services for 24 per cent.
Increased demand for non-technical roles
The data also highlighted the changing composition of ICT sector employment, with computing and technical jobs accounting for a smaller percentage of positions.
"The Update shows us that employment growth in the ICT sector between 1999 and 2001 was fuelled by increases in non-technical jobs, with the result that the proportion of computing and technical positions fell by almost nine percentage points during that period," Mr Hogg said.
"While this probably reflects an increased focus on marketing ICT and the growth of call centre activities, it could also be impacted by moves to outsource ICT jobs like programming off-shore."
Job growth across the sector averaged around seven per cent per annum between 1993 and 2001, with the highest growth in information services, rising by almost 16 per cent per annum. By comparison, equipment manufacturing fell from 7.7 per cent of total ICT industry employment to less than five percent.
However, the Update also suggested that ICT industry employment has been falling since 2001, while total employment in Australia has been rising.
Businesses drive R&D activity
The report provided detailed statistics about Australia's ICT related R&D investment, showing that more than $1.5 billion was spent on ICT related R&D in 2000-01, almost 90 per cent by businesses.
"This is good news for commercialisation, since it shows that business, and not Government, is driving the vast majority of R&D projects, so one would expect that the products being developed to relate closely to identified business needs," Mr Hogg said.
Update breaks new ground with geographical analysis
The report also included a state-by-state analysis of ICT production, employment and research activity, which Professor Houghton said had not previously been published.
"NSW and Victoria between them account for nearly three-quarters of all ICT industry jobs, but between 1996 and 2001, the highest job growth occurred in the ACT (8.2 per cent) and WA (4.2 per cent). The ACT also has the highest intensity of ICT employment, with almost 25 ICT industry jobs per 1,000 population in 2001," he said.
NSW and Victoria also accounted for 73 per cent of business expenditure on ICT related R&D, 60 per cent of Commonwealth Government expenditure and 54 per cent of higher education expenditure. Conversely, the ACT is the location for just one per cent of business expenditure on ICT related R&D, compared to 14 per cent of higher education expenditure and 25 per cent of Commonwealth Government expenditure.
The 2003 Australian ICT Industry Trade Update is based on data supplied by the Australian Bureau of Statistics and other sources. To view an Executive Summary, click here.
This media release is available on the ACS Web site at http://www.acs.org.au/news/070403.htm
ENDS
About the Australian Computer Society: The ACS is the recognised association for information technology (IT) professionals, attracting a large and active membership from all levels of the IT industry and providing a wide range of services to its 16,000+ members. A member of the Australian Council of Professions, the ACS is the public voice of the IT profession and the guardian of professional ethics and standards in the IT industry, with a commitment to the wider community to ensure the beneficial use of IT. See the ACS Home Page for more information.
Media Enquiries:
Richard Hogg, ACS National President, Tel: (0408) 549 531, Email: richard_hogg@acslink.net.au
Caroline New, ACS PR Consultant, Tel: (02) 9555 1986 or (0411) 889 456, Email: cnew@acslink.net.au
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