What is the relationship between information technology and economic development?
Information technologies (IT) can play a role in economic development by providing a prosperous industry in itself, which increases employment and increases exports. Industry can also contribute to wider economic development in the country by creating higher efficiency across industries, helping to reduce costs and increase the quality of industrial production. Information technologies and economic development are also associated when the services sectors are allowed to provide its services in a larger geographical area. Government services can be improved by introducing information technology, helping back office services and leading to greater efficiency in records. Sector management, such as transport and public services, can also be improved by using specialized information technology services.elopment. Barriers of entering the IT industry are not as large as other industries and relatively small capital expenses may be required. A country that has a group of qualified engineers and computer scientists,It may have a competitive advantage in IT services. An example in recent history is India, which has developed the software industry using tax incentives and other incentives for software developers and exporters and built a prosperous industry based on the workforce that has relevant IT and language skills.
Information technologies and economic development are interconnected when IT services stimulate innovation and efficiency throughout the economy. Greater ease of communication and introduction of IT systems can reduce costs, promote efficiency and improve the quality of products and services. The use of cooperation technology facilitates the dissemination of knowledge within Afirma and between companies in the sector, improving communication and cooperation with customers and suppliers. Digital processing, storage and communication of information increases the efficiency of Back Office services such as accounting, wages, inventory management and various production operations. Financial institutions can increase efficiencyUsing information technologies that lead to more efficient processing of loans and control of microfinance operations.
Government services can be operated more efficiently by IT in areas such as data collection and record keeping. Important government operations such as tax collection may be more efficient and electronic submission of tax returns can reduce the government's administrative burden. Electronic storage of data by the government can also help transparency by allowing the public easier to access government data that is relevant to them. The operation of public services such as electricity and IT systems can be improved by ERIVICES. Information technologies and economic development can also be interconnected by the extension of the educational system through distance education or its use in schools.