Report: Bermuda IT sector contracts
Ninety percent of all businesses in Bermuda use computers, but the industry that services them has seen a general contraction in employment, trade, investment and contribution to Bermuda’s GDP in 2010.The Government released the 2010 Information and Communication Technology (ICT) report on Friday announcing the economic contribution of the Island’s ICT industry, which is comprised of 162 local businesses.Bermuda was selected as one of four Caribbean Community Secretariat (CARICOM) member states to participate in a pilot project to measure the economic contribution of the ICT sector. These industries are involved in the development, delivery and support of advanced technological products.The report shows that growth in this sector declined 5.5 percent from 2009, generating $254 million for the Island’s GDP in 2010, representing just 4.4 percent of the economy, ranking just above other goods-producing industries like agriculture, manufacturing, and electricity production. In 2008, the industry contributed a high of $289 million, however, has seen a decline since then.Employment in this sector also fell by 5.9 percent in 2010 to just 1,384 jobs, however, the number of IT professionals increased by 127 workers. The sector has seen a steady decline of jobs since 2007 when the industry saw a high of 1,591 positions. According to the report, corporate downsizing and cost cutting measures were significant factors in the decline from 2007 to 2010.While Bermuda is not a producer of ICT goods, the total value of imported computer equipment, software and services in 2010 totaled approximately $145 million, up from $129 in 2009.Conversely, exports of ICT services totaled only $83 million, down almost $16 million from 2009.In 2010, expenditure on ICT capital goods fell $27 million to $114 million from 2009 primarily due to the completion of large scale modernisation projects with the telecommunications industry.