AMMAN - IT sector revenues dropped by 7 per cent in 2009 as a result of the global financial crisis, according to a survey released on Monday.
The sector generated around $895 million last year - about $685 million in domestic revenues and $209 million in exports, the survey, conducted by the IT Association of Jordan (int@j) and the Ministry of Information and Communications Technology, indicated.
"The drop was expected and it is reasonable in light of the global financial crisis that affected the entire world at the same time our exports are growing and are expected to grow further in 2010," Minister of Information and Communications Technology Marwan Juma told reporters at a press conference yesterday.
Chairman of int@j Ayman Mazahreh said that although the IT sector witnessed a decline in 2009, it has witnessed an average growth rate of 16 per cent over the past five years including an average growth rate of 15 per cent for domestic revenues and an average growth rate of 27 per cent for export revenues, which reflects maturity and stability in the industry and an increasing trend towards exports.
The survey indicated that IT sector revenues stood at $962 million in 2008, $882 million in 2007, $770 million in 2006, $580 million in 2005, $440 million in 2004 and $295 million in 2003.
Jordan's IT exports in 2008 stood at $226 million compared with $196 million in 2007, $191 million in 2006, $162 million in 2005, $79 million in 2004 and $69 million in 2003, according to the survey.
IT sector exports to the US accounted for 22 per cent of the overall exports in 2009, while 21 per cent of exports went to Saudi Arabia, 13 per cent to Iraq, 7 per cent to the United Arab Emirates and 5 per cent to Nigeria.
"The numbers indicate an increasing demand for Jordanian products in US market coupled with increased spending in the US, while exports to the UAE declined due to the financial crisis. Nigeria, on the other hand, is going through major telecom development and Jordanian ICT companies have built strong experience in solutions in this area," an int@j statement indicated.
Jordan exports its IT products to 49 countries, according to int@j Chief Executive Officer Abed Shamlawi.
According to the survey, 442 companies work in the ICT and IT-enabled services sector, which contributes about 14 per cent annually to the country's gross domestic product.
The Kingdom's IT exports include computer consultancy and computer facilities, computer programming services, data processing, web portals, software publishing, computer and equipment repair and installation of communications equipment.
The survey showed that foreign direct investment in the sector increased by $16 million in 2009 to about $127 million.
It also indicated that overall employment in the ICT and IT-enabled services sector in 2009 stood at 14,928 employees: 11,000 in IT employment, 334 in IT-enabled services (call centres) and 3,594 employed by major telecom operators.
Of these figures, 38 per cent constituted technical positions, 18 per cent in operations, 13 per cent in management, 11 per cent in sales, 9 per cent in customer care, 7 per cent in human resources and administration, and 3 per cent in marketing.
According to the survey, 97 per cent of those employed in the sector are Jordanians, and women account for 24 per cent of IT employees in the country.
By Mohammad Ghazal
© Jordan Times 2010
