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Report Topic

Contribution of IT sector in national income

Group Name- Mirrors

Group Number- 03 ; Sec- 01

Course code- ECO-201

Course Name- Macro Economics

Submitted to: Dr. Md. Ashraf HossainSr. lecturer

Eastern University

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Those of my friends contribution and

doing there activities on this Presentation

Submitted by-

SL. No. ID No. Name Contributions

01 1032000013 Kazi Md. Wahiduzzaman Objectives,Methodology of data

charts

02 103200029 Md. Nazrul Islam Data analysis

03 103200030 Hafizur Rahman Data analysis

04 103200047 Sazzad Hossain Tazu Data analysis05 103200019 Tanzina Zaman Overview of IT sector,

Recommendation

06 103200035 Shabbir Hussain Mahadi Absent

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Introduction

Information Technology (IT) is concerned with technologyto treat information.

The acquisition, processing, storage and dissemination of

vocal, pictorial, textual and numerical information by amicroelectronics-based combination of computing andtelecommunications are its main fields.

Some of the modern and emerging fields of Informationtechnology are next generation web technologies,bioinformatics, cloud computing, global informationsystems, large scale knowledgebases, etc.

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To know the contribution of IT sector in NationalIncome.

Analysis investment, expense, income, profit-lost

data. Problems and Potentials in IT sector.

To concern the people how ( IT) Information

technology can contributing the national income andincreasing the employment and real GDP rate.

Objectives

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Tuesday, December 18, 2012Copyright 2003 Pearson Education, Inc.

Investment of IT sector

Business Analysis : External Factors , Demand Factors , Supply

Factors

Income rate and Expense rate of IT sector

Profit or loss in the IT sector

Effect in National Income and GDP

Data and analysis

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Data and analysis Cont.

Telephone

s - mobile

cellular

(Years)

1998 2000 2003 2005 2007 2009

Banglade

shimobile

Users

41,000 283,000 283,000 9,000,000 34,370,0

00

50,400,0

00

Definition of Telephones - mobile cellular: This entrygives the total number of mobile cellular telephone

subscribers.

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Data and analysis Cont.

mobile cellular s graph

We can easily see that the number of users have increased very highly inlast 5 years. That also shows that we are using telecommunicationdevices in high rate.

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Definition of Internet users:This entry gives the number ofusers within a country that access the Internet. Statistics vary fromcountry to country and may include users who access the Internetat least several times a week to those who access it only once

within a period of several months.

Data and analysis Cont.

Years 2000 2002 2003 2005 2007 2008 2009

Bangladeshi

net

Users

30,000 150,000 243,000

300,000

500,000

556,000

617,300

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Data and analysis Cont.

Internet users graph

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Business Analysis : External Factors

Technological Factors: Network externalities and openstandards have led to constant innovation.

Government: Federal government defense spending has grownat a CAGR of 6.96% in the last 5 years as compared to 2.90%CAGR in the last 10 years. Defense spending on technology hasincreased from 2-4% to 8-10% in recent times.

Social Changes: Minimal, mainly influenced by convenience.

Demographics: The use of technology is spreading in various

functions within organizations and across many industries.

Globalization: Outsourcing of software services and BPOactivities to India.

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Business Analysis: Demand Factors

Growth in GDP: Revenue cycle in the IT sector has beenfollowing the trend in the GDP growth rate.

StockValS&P INFO TECH. SECTOR COMPOSITE ADJ (SP-45) Price 18.51993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

REVENUES YTY % CHANGE-14

-7

0

7

14

21

HI 20.5LO -16.9ME 9.5

CU -1.6

06-30-199303-31-2003

REVENUE-PER-SHARE YTY % CHANGE-12

-6

0

6

12

18

24

HI 18.3LO -15.7ME 9.3CU 0.5

06-30-1993

03-31-2003

GROSS DOMESTIC PRODUCT ($BIL) YTY % CHANGE2

3

4

5

6

7

8

HI 7.1LO 2.0ME 5.4CU 3.7

06-30-199303-31-2003

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Business Analysis: Demand Factors

Manufacturing Index: ISM Manufacturing activity index and technologyorders have a high correlation. Current manufacturing index has droppedto 47, which indicates slowdown in technology orders.

IT Spending: CIO and CFO IT spending survey results: Most business heads expect a growth of 2-3% in IT spending in 2003.

Spending critically depends on company performance and business needs.]

Quality service and low cost will influence spending decisions overinnovation. This will put pressure on profit margins of IT companies.

Hardware purchases are becoming more price driven. Lengthening of life

cycles and horizontally scaled architecture are the main reasons for this.

Spending on storage and software expected to increase. Short of capacityand software being a leading indicator of business needs are the reasonsfor this.

Long-term growth in IT spending expected to be 5 - 7%.

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Business Analysis: Supply Factors

1. Capacity Utilization: Utilization is low for all hardware, communications and

networking equipments compared to industries in othersectors.

Semiconductor industry is currently operating at 65%capacity utilization.

Capacity utilization of storage devices is very high mainlydue to delay in spending by businesses in the past.

2. Technological Innovation: Intel plans to release the next microprocessor chip in June

2004. Hence, till then prices of semiconductor chips areexpected to decrease at the historical rate of 7%.

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Recommendations

Strategically look at the industries within the sector for opportunities: Software

Hardware

Semiconductors

IT Services

Keep watchful eye for recovery; we believe that we are close. Invest more in ICT sector

Promote IT enabled services

Invite Big companies like Microsoft, IBM to open Development

center. Guide Universities to ensure ICT related Courses for all students.

Ensure Primary level IT Knowledge for all

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Conclusion

ICT sector is very Potential sector, Though for

Developing countries like us have to fight hard to get

a better positions with the developed countries.

If our government and we work together we may be

able to create a successful example of technologically

advanced in Bangladesh.

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Any Questions ??????