The global information and communications technology (ICT) industry has provided the supporting infrastructure for economic growth across the world in the last decade. Despite the downward trend in the industry following the dot com crash, the ICT industry continues to show enormous potential.

ICT is a vital component of the infrastructural support for the development of any economy. Global trends in telecommunications indicate a shift toward open access, and the creation of a healthy competitive environment. Companies are likely to continue outsourcing IT services, mainly to India, but with increasing bids from Russia, the Philippines, Ireland, and Japan.

ICT spending is likely to grow impressively, with emerging markets in eastern Europe and Asia leading the way. Shares of IT and telecommunications were almost equally important in the total ICT spending, with the governments and businesses accounting for over three quarters of the total ICT spending. The political establishment plays a critical role in prioritizing this industry. General economic policies greatly affect this demand-driven industry and greater industry-specific infrastructural developments provide an added impetus.

The Japanese ICT industry accounted for 8.6 percent of the gross domestic product (GDP) and 6.8 percent of all employment in 2005. The Japanese Government is playing an active role in facilitating the steady recovery of the ICT industry by implementing favourable general economic policies, increasing spending on science and technology, and persisting with tax as well as tariff reforms to aid ICT investments. Its prioritization of the IT and telecommunications industries has spurred growth, while de-regularization has increased competition. The Government hopes to make Japan a major ICT hub by 2010 and it strongly supports ICT innovation by creating an environment conducive to research and development and improving the ICT infrastructure. It also rolls out annual programs to increase the diffusion and use of ICT technologies.