IT sector to create 5.8 million new jobs by 2013

UK spending on IT is likely to reach £50bn by the end of 2009

Worldwide growth in the IT sector will create 5.8 million new jobs and 75,000 new businesses in the next four years, new research from Microsoft has forecast.

The world's top 52 IT spending countries will spend $1.4 trillion (£850bn) by the end of this year and $1.7 trillion (£1 trillion) by 2013, according to the research which was carried out by analyst firm IDC.

This growth will generate €265bn (£243bn) in taxes this year in Europe alone, and a new drive towards cloud services is likely to add $109bn (£68bn) to the region's economy by 2013.

Spending on IT in the UK, meanwhile, is likely to reach £50bn by the end of this year, IDC said, representing growth of 1.8 per cent, compared to average GDP growth of -0.1 per cent a year.

The UK government has recognised the need to drive investment in technological innovation in order to recover from the worst slump since the Second World War.

One example was prime minister Gordon Brown's announcement in June of a UK Innovation Investment Fund to invest in technology-based businesses with high growth potential.

The fund focuses on growing small businesses, startups and spin-outs in digital and life sciences, clean technology and advanced manufacturing.

IDC's research shows that the UK IT market will drive the creation of nearly 2,500 new businesses and 78,200 new jobs between the end of 2009 and the end of 2013.

Most of the new companies will be small and locally owned, and the jobs will be highly skilled, high-quality jobs, the analyst said.