Greed to drive IT sector's bright outlook

The IT sector will be one of the rosiest spots in the Australian economy over the next 12 to 18 months, predicts Access Economics director Chris Richardson.

He believes the IT industry will achieve a growth rate double that of the overall domestic economy.

The reason for its success will be greed, Richardson told delegates at the annual Asia Pacific Symposium of market research company Gartner.

IT will attract investment because productivity gains from IT investment are one of the few growth drivers left in the economy, he said.

The housing industry, which represents one-twentieth of the economy, is contributing about one-third of current growth figures and can not reasonably be expected to do more.

Having already earmarked $5 billion on a range of measures such as road infrastructure improvements, the Federal Government's scope for more stimulatory injections is limited. And interest rates sitting at historically low levels don't offer much room for further cuts.

That leaves IT investment as a primary mechanism which corporate Australia can deploy to promote growth and profits, Richardson said.

His prediction, made during an after-dinner speech at the conference, drew cheers from about 1600 delegates attending the event.

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