February 14, 2006

On average, the United Kingdom invested about 13 billion pounds in its economy in B2B software for the year 2003. At first glance, that number seems like very old news.

However, consider that until yesterday, the U.K.'s Office of National Statistics (ONS), believed this figure to be only 2.5 billion pounds.

The ONS has since made the adjustment in the numbers, which now shows U.K. B2B software investment to be 2 percent of GDP, "pretty similar now to that recorded in the U.S.," according to Richard Holway.

As such, the 2 percent figure may reflect a built-in commitment on the part of major industrialized economies, arguing for a permanent place for software (and e-business) at the macro level. The implication is that, as goes any particular economy, so goes IT investment in general.

The ONS readjustment ought to correct a number of flawed impressions about the U.K. in particular, notes Holway.

"The UK Government can boast a higher GDP, can refute criticisms of lower productivity and can say that the UK can hold its head higher in terms of investment. Trade bodies can show how much more important to the UK economy investment in software actually is."

Source: Line 56