The Information Technology (IT) sector has experienced solid growth in recent years. Fuelled by strong demand, a number of indicators reveal that IT has expanded and contributes more to economic activity than ever before. Investment in local infrastructure (e.g., high-speed networking, advanced fibre optic systems) by the major IT players has been strong in recent years providing consumers and businesses with access to reliable, high quality services and products. The Province's IT sector for the most part is young but has proven strengths in a number of areas, including distance education, telemedicine, new media and marine information services. These strengths stem from a combination of factors including unique and challenging geographical characteristics, a dispersed population, and the fact that an increasing portion of economic activity takes place in a marine environment.
Two significant segments of the IT sector, computer and related services and telecommunication carriers, have recorded strong growth in recent years. Real GDP in the computer and related services industry averaged growth of 10.4% per year between 1992 and 1997. Telecommunication carriers also expanded rapidly, by 6.1% per year.
The IT sector has also grown in terms of job
opportunities. A survey of employers conducted in Spring 1998 indicated that employment in
the 12 proceeding months grew by approximately 400 jobs, most of them permanent, well
paying, full-time positions. While 70% of IT firms are located in the St. John's Census
Metropolitan Area, employment growth has been recorded both inside and outside the St.
John's area.
The contribution IT makes to economic activity is important from at least two perspectives. It generates employment and income for those working in the area and, perhaps more importantly, it has an Aenabling effect@ on other elements of the economy by enhancing productivity and performance. There is widespread interest in the development of this area. The establishment of Operation ONLINE, an organization dedicated to the growth and promotion of the IT sector, in November 1996 reflects industry and government's belief that the sector would benefit from a focussed effort involving ongoing evaluation and support.
Operation ONLINE's focus is guided by the importance of investment in human resources as a foundation for growth and the selection of focal points of activity which both marshal local industry toward external market opportunities and direct large external players to local resources. Examples include the establishment of the Digital Animation Centre at the College of the North Atlantic's Stephenville campus in partnership with Silicon Graphics Canada and ACOA, and support toward the establishment of a Network Computing Centre of Excellence with Sun Microsystems of Canada, among other strategic investments.
Human resource issues are of particular concern. Because growth in this sector is strong across the continent, the demand for experienced people is high. The IT skills gap was outlined in a recent report Closing the IT Human Resources Gap in Newfoundland & Labrador released in May 1998. The demand for experienced people is also highlighted in the AThink About IT @ Home@ campaign, launched by Operation ONLINE in December 1997 which focuses on attracting expatriates to IT opportunities here in the Province. To address the skills gap in the Province, Government and the IT industry have begun to implement a process to review training programs and move towards program accreditation as well as professional certification preparation. In addition, various specialized training programs have been implemented to assist new graduates in their search for employment. Over 150 have found employment in the local IT sector.
For more information, visit
Operation ONLINE'S web site at www.online.nf.ca
Funded by the Canada/Newfoundland Agreement on Economic Renewal.