The Information Technology Cluster
As part of the cluster process, late in 2001, working groups consisting of key leaders in the information technology cluster, came together to work on shared challenges. These were challenges that no group or company could tackle on their own. They needed the strength and collaboration of working on teams that involved other components of the cluster.
To overcome their challenges they decided to develop shared solutions. Those shared solutions are called Action Initiatives and the action initiatives for information technology are listed below.
- Intelligence centre and cluster network (A flagship initiative)
- Prepare an integrated Information Technology marketing plan
- Suppliers collaborative sales initiative
- Develop a guide or handbook on collaboration
- The Calgary Angel Network
For more information about the Information Technology Action Initiatives
Background information
Calgary's information technology cluster growth has slightly exceeded the rapid North American pace over the past decade but did not keep up with the explosive growth in Seattle and Silicon Valley. However, this is a large cluster employing an estimated 20,000 in the region, with a strong location quotient of 2.5 or two and half times the North American average.
Cluster inclusions
The majority of cluster employment is in:
- Software and systems design (56 per cent of total employment)
- Scientific and technical Consultants (23 per cent of total
- employment)
- Information and Data Processing Services (12 per cent of total employment) and
- Specialized Design Services (nine per cent of total employment)
Each of these segments is well represented in the region in terms of better than average location quotients.
Global outlook
Rapid growth in computer systems design is driving cluster expansion. The IT cluster has good wages and salary increases forecast to be slightly above the national average of 5.1 per cent. The cluster has experienced growth within each segment of the cluster since 1998.
The diversity of this marketplace provides opportunities for large and small firms to compete.
- Calgary has good prospects in networking, for example the SuperNet initiative.
- In software, companies will continue to grow in serving the oil and gas marketplace in Canada and abroad. Internet/e-commerce may grow in the region, leveraging business-to-business (B2B) and Internet exchanges in energy resources.
- Information technology service businesses will continue to expand serving U.S. markets, leveraging exchange rate advantages.
- Provincial research programs, such as iCORE of the Alberta Science and Research Authority (ASRA), regional technology institutions, such as ARC and TRLabs, incubator facilities such as Calgary Technologies Inc. (CTI) and IT associations, such as the Alberta New Media Association, continue to assist regional company innovation.
- Emerging areas include fields such as telehealth and streaming media for e-learning as well as a diverse array of firms involved with enterprise e-solutions and "roomware" solutions for interactive meetings.
Challenges
For now forecasts for this cluster are down globally: software, networking, Internet/e-commerce, computer and hardware manufacturing will be hurt by limits in spending until 2002. Despite this temporary slowdown the information technology industry is expected to grow globally at 12 per cent through 2005, with almost 41 per cent of ongoing spending on technical support and systems integration for an installed base. The U.S. market is expected to continue to be the major source of demand, growing 50 per cent during the next four years.
Nonetheless, the IT cluster is hit hard by continual brain drain of technical and professional workforce to the U.S. Meeting future labour skill needs is a crucial challenge for enabling growth in this cluster.
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