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IDC: Canadian IT Channel Generates $25 Billion in Revenues

• 01/15/2001

Surpassing forecasted expectations for 2000, the Canadian IT Channel realized $25 billion in revenue last year, reinforcing its importance to the entire Canadian economy. Through a Microsoft Canada Co. and Hewlett-Packard (Canada) Ltd. sponsored study conducted by International Data Corporation (IDC) Canada Ltd., measuring the impact of the IT channel on the broader economy and the Canadian IT industry in general, three key areas were examined: economic impact, employment and expenditure.

Key findings of the study include that the IT channel in Canada generates $25.1 billion in revenue. Over 155,000 people are employed through the channel, including over 11,000 new jobs in 2000. In the year prior, job growth in the IT channel represented 3.7 per cent of the total net job creation in Canada. Through business and employee expenditures, the IT channel puts $16.6 billion back into the Canadian economy. In comparison to other industries, the IT channel represents 1.6 percent of Canada's Gross Domestic Product (GDP), which is slightly greater than the GDP of the agricultural sector in Canada (in 1999).

The IT channel is defined as those organizations that provide technology consulting, integration and fulfillment services for hardware and software products in order to help their clients solve business challenges. The channel represents a network of IT specialists who not only sell the product to businesses, public sector organizations and consumers but also provide training and develop customized business solutions.

The 2000 study also found that IT channel and service employees have an annual average salary of over $42,000, 31 per cent more than the average Canadian worker. This is attributed to the higher skill-set demand in IT. When examining the educations of IT channel and service workers, the study revealed that 35 percent of them had College educations, 31 percent had University undergraduate degrees, 23 percent had Secondary School educations and 11 per ent had University graduate educations.