The economic Issues on the IT industry

        Economic effects in the IT industry                       

What are the economic effects on the IT industry?

It is said that:

Ø People are expected to be available 24/7 e.g. with Blackberries or iPhones which means that people are not only office bound but they work on the go, and they may have restricted social/family life.

Ø People are to have flexibility of working patterns:  working from home, working shifts, etc. this also means that there is no choice when it comes to a job because of the flexibility.

Ø It is easier to source products from all over the world (growth of economies in India and China), and also if they keep their international contacts longer they could get it cheaper and make a little more profit.

Ø Machines are taking place of number of workers – less need for unskilled labour; this has a negative impact on our employment status around the world.

Ø It is easier to set up small businesses using web host servers and this can spread out around the world and this can influence more jobs and then there is a demand for employees and then more people can earn money.

Ø It is easier to track consumer spending – marketing

Have EBay, Amazon, Last-minute, iTunes and go Compare really affected the market?

Some companies would believe that these online destinations have had  a big impact on the market because this has led to the loss of their customers and this means that they have lost their profit margin, however when it comes to the comparison of  Amazon and Tesco there is a little difference because Tesco sell Brands straight from a source whereas Amazon sell used and new goods which realistically shouldn't cause any competition but some people use it to buy the things that Tesco may sell and it may be cheaper than them. iTunes are at competition with stores like HMV and have also allowed the store to sell their products e.g. gift vouchers.

There is now a popular demand for businesses starting online and this means that there is less money lost when it comes to purchasing or renting a premises. Amazon have a recommended purchase links next to the page you have viewed based on what you have purchased.