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Tough year ahead for IT sector

It is going to be a tough year coming up for those in the IT sector, according to a report released this week by the OECD.

The IT sector is likely to have grown by four percent at most in 2008 compared to the previous year, but that growth is expected to remain flat or decline in 2009. Major corporate customers in sectors hard hit by the downturn, such as banking, insurance and retail, are also cutting back spending plans in 2009.

However, do not despair. IT services and software will generally grow, along with new Internet and communications-related products and infrastructure. In general some parts of the IT sector are so indispensable now that no business can afford not to continue spending during the economic downturn.

Spending on software and IT services, including outsourcing, by governments and business is likely to continue, the OECD forecasts. Internet-related sales and investments in infrastructure, driven by demand for high-speed Internet from consumers and business, will remain strong.

How about the job market? It is also expected to grow at a steady but low rate, giving those about to graduate that there is some space for them in the sector.

About 5.5 percent of total employment in most OECD countries attributed to ICT workers in 2007. This figure varies by country. In the US IT specialists make up just under six percent of total employment. From 1995 to 2006 ICT sector employment in the OECD countries increased at an annual average rate of 0.9 percent, about the same pace as the total business sector.

However the industry is demanding ongoing occupational specialisation as higher level ICT skills are required over time. These skills are needed as the ICT sector restructures around more advanced products and activities. The message here is one of continuous career development, especially if you have been some years working in the IT sector.

"The longer-term global performance of the ICT sector will depend on whether new goods and services continue to prompt businesses and consumers to keep investing in and buying ICT output; whether non-OECD economies maintain their dynamic growth paths, although their aggregate markets are still considerably smaller than for the OECD area; and how large the contribution of ICTs will be to meeting major challenges such as climate change, the environment, ageing populations, skills shortages and continuing globalisation.

Pick one of those five challenges and you will have a good chance of being on the right road to IT riches in 2009 and beyond.

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VHS has lasted 20 years, one of the longest runs for a format. Now the end is here. Distribution Video Audio, based in Florida, said this month it had shipped the last of its saleable stock: DVA is the last major supplier of VHS tapes.

As noted in a previous column obsolescence, which is what has happened to VHS, is a major problem for consumers. One may be storing all your files and photos on DVD now, but look at how quickly the CD-ROM has essentially taken a back seat to it and to USB keys.

One wonders how many people have bought the technologies to transfer 8m to VHS to CD-ROM to DVD.

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"Just to clarify, I was NOT tweeting from inside a burning plane. My first tweet wasn't sent until I was safely away from the plane." That has to be the quote of the week. It is a statement by Mike Wilson, who began letting everyone know he was safe after an air crash at Denver International over the weekend.

The Continental Airlines Boeing 737 veered off the runway during take-off and burst into flames. Wilson and everyone else escaped. Once out of the plane Wilson began texting. We will leave out the swearing but he essentially said "...I was just in a plane crash."

Who would have thought that one simple online site using texting would be beating traditional media to the punch? Everyone thought it would be there regular competitors moving online. Still there is nothing to stop traditional media from joining in. Some news sites already have their Twitter sections.