RESTRICTED  WORLD TRADE  
ORGANIZATION  S/C/W/300 
22 June 2009 
 
 (09-3053) 
Council for Trade in Services  
  
COMPUTER AND RELATED SERVICES 
 
Background Note by the Secretariat
1 
  1. This Note has been prepared at the request of  the Council for Trade in Services, with a view 
to stimulating discussions in the Council on the co mputer and related services sector.  It provides 
background information and updates a previous no te on trade in computer and related services 
(S/C/W/45, 14 July 1998).  This Note focuses on  developments and  issues considered to be most 
relevant to the GATS.   It is not intended to  provide a comprehensive account of the sector.   
Following the introduction, Part II of this Note deals with the definition of the sector, Part III provides 
an economic and trade profile, Part IV with an an alysis of GATS commitments and Part V with the 
trade and regulatory environment.  
2. This Note attempts to provide available data on computer and related services.  It should be 
noted, however, that many of the available sources of data and information address computer services 
in the broader context of the information and communications technology (ICT) industry, usually 
including equipment and telecommunication services. Sometimes, a source  includes the sector data 
within general data on business services. Such sources do not always  distinguish data for the 
computer and related services component from the la rger category.  Moreover, various sources do not 
use a uniform definition of the activities defined as computer services or software.  Some OECD data include what may be regarded as content services a nd some data reported by UNCTAD cover a broad 
category referred to as information technology (IT)-en abled services.  Therefore, data from different 
sources are not readily comparable.   
I. INTRODUCTION 
3. Global spending for computer services and comput er software reached US$1 trillion in 2007 
and estimates predict that spending will grow by near ly 10 per cent annually over the next four years.  
The world's top ten exporters recorded about US$10 0 billion in exports in 2006 and imports by the 
top ten markets were valued at US$42 billion.  Indi a and Ireland lead global exports in 2006, while 
the United States and Germany were the leading import ers.  Although trade is currently dominated by 
industrialized countries, emerging markets demonstrat e steadily increasing market shares.  Trade data, 
however, are thought to significantly underestimate the value of global trade on computer services and software.  The data do not fully capture all of the computer-related consulting services, some of which 
are performed as management consulting services, and do  not show the full extent of on-line trade and 
intra-firm transactions.  As regards emerging markets, early trade patterns are often characterized by 
such intra-firm activities (e.g. software or a pplications development, as well as research and 
development functions).   
4. Strong demand for computer and related servi ces reflects the needs of businesses for more 
efficient electronic transaction processing, higher productivity, improved customer service, and for 
technologies to enhance their global competitivene ss.  Major commercial spenders on computer 
                                                     
 
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. S/C/W/300 
Page 2  
 
  services and software are the finance industry, communications, professional services, the health 
sector and the tourism industry.  As a result, growth of user industries stimulates growth in the computer and related services.  Activities su ch as business intelligence,  enterprise resource 
management and security, retail distribution, and te lecom and mobile applications are expected to 
demonstrate high demand for computer and related services in the coming years.  Governments are 
also a major market, ranked second in spending afte r the financial sector.  During 2009, curtailed ICT 
investments by the finance and insurance sectors ma y suppress spending.  However, long-term growth 
prospects for the ICT sector are considered to be  good, as ICTs have become a fundamental part of 
the economic and social infrastructure.   
5. It bears recalling that important linkages ex ist between the equipment, software and 
communications components of the information technol ogy market and developments in the computer 
services sector.  GATS directly addresses computer services and other IT-related service sectors.  However, other WTO agreements are concerned with  the elimination of tariff and non-tariff barriers 
on information and communication equipment and w ith the intellectual property rights issues that 
have come to the forefront in the computer industr y.  In recent years, Internet has made copyright 
infringement a more common problem than in the past.  The WTO Information Technology 
Agreement (ITA) and Mutual Recognition Agreemen ts on conformity assessment can help reduce the 
cost of equipment essential to trade in comput er and related services.  The Agreement on Trade-
related Intellectual Property Rights (TRIPS) is also instrumental to the growth and evolution of trade 
in computer and related services.   
II. DEFINITION OF THE SECTOR 
6. Some of the data-related uncertainties cited in this Note are only part of the challenge of 
defining computer and related services.  Some computer services have become nearly impossible to distinguish from value-added telecommunications ser vices.  In addition, a commercial trend towards 
integrated offerings of the subsectors identif ied in the GATS Classification makes it increasingly 
difficult to distinguish among them (see Appendix Figure A1).  Also, the terms used in the 
corresponding CPC definitions of the GATS list are fairly outdated; where, for example would "web 
hosting" fall within the definitions provided? Rega rding computer software, software provided in 
physical format usually crosses borders as a good,  but whether it also represents a service on a 
physical carrier medium was a question left unresolved by the WTO discussions on electronic 
commerce.
2   
7. Computer software supplied on-line normally falls outside of the definition of and/or data on 
goods trade and is usually considered to be a service.   Nevertheless, the placement of various types of 
computer software within services classifications remains unclear at the moment.  An Understanding proposed by a group of Members suggests that the software covered by the GATS computer and related services sector consists of:   
the sets of instructions required to make computers work and communicate.  A 
number of different programmes may be developed for specific applications 
(application software), and the customer may have a choice of using ready-made programmes off the shelf (packaged softwa re), developing specific programmes for 
particular requirements (customized softwa re) or using a combination of the two.
 3   
                                                      
 2 See, for example, Communication from Canada, "Discussion Paper: The Classification of Software 
Delivered Electronically",  JOB(02)/38, 8 May 2002.   
 3 "Understanding on the scope of coverage of CPC 84 - Computer and Related Services," TN/S/W/60 
S/CSC/W/51, 26 January 2007.  The proposed Understanding also calls for listing at the higher, two-digit CPC 
level in schedules to address the issue of conv ergence among the computer service subsectors.  S/C/W/300 
 Page 3 
 
 
  While drawing a clear line between such software and other types of software might in some cases be 
difficult, presumably, other types of software might  have a home elsewhere in the services sectoral 
classification list. Meanwhile, some national and in ternational statistical groups are examining the 
notion of placing certain standardized software  products within a new services category known as 
software "publishing".   
III. ECONOMIC AND TRADE PROFILE 
8. In 2007, total global spending on computer services and software reached US$1 trillion with 
the services component accounting for US$712 billon, or  about 70 per cent of the total and software 
accounting for US$296 billion (see Table 1).4  Spending on computer equipment represented an 
additional US$466 billion in 2007.  Industrialized ec onomies accounted for 88 per cent of the global 
expenditures.  Growth rates in ICT spending by industrialized economies are expected to slow down 
in coming years, although growth in spending will re main strong in the Asia Pacific and Middle East 
region (see Figure 1).5   Spending in the software segment has increased by 10.6 per cent a year since 
2003, a higher rate of increased than in the equipment or services segments.6  Data on computer 
services and software spending, by country, is  provided in Appendix Tables A3 and A4. 
 Table 1.  World Spending on Computer Servi ces and Software,  by region (US$ billions) 
  
2003  
2007  
Projected 
2011 
World  Computer services 522.8 711.7 845.9 
  Computer software 197.9 295.8 373.7 
North America Computer services 268.0 340.2 382.7 
  Computer software  98.6 130.3 158.0 
Latin America Computer services 4.7 10.3 14.3 
  Computer software 1.8 3.8 4.9 
Western Europe  Computer services  164.3 225.9 271.5 
  Computer software 71.8 109.9 139.3 
Eastern Europe Computer services  4.5 9.9 14.4 
  Computer software 4.1 8.5 12.3 
Asia Pacific Computer services  78.1 115.2 148 
  Computer software 21.0 38.8 54.4 
Middle East Computer services  2.9 5.3 7.7 
  Computer software 1.2 2.0 2.9 
Africa  Computer services  1.9 4.5 8.8 
  Computer software 1.1 2.4 3.5 
 Source : Compiled from Digital Planet 2008, country tables. 
                                                      
4 Digital Planet 2008 .  Note that the definition of  computer services  applied in data in the report 
includes the total value of outsourced services – whether domestic or offshore – such as IT consulting, computer systems integration, outsourced custom software development, outsourced world wide web page design, 
network systems, network systems integration, office automation, facilities management, equipment 
maintenance, web hosting, computer disaster recovery, and data processing services.  In this report, the value of 
computer services spending is expressed in millions of current U.S. dollars.  The definition of software used in 
the data reported is fairly narrow.  It includes the total value of purchased or leased packaged software such as 
operating systems, database systems, programming tools, u tilities, and applications.  It excludes expenditures for 
internal software development and outsourced custom software development. 
5 Digital Planet  figures for total ICT spending include no t only computer equipment, services, and 
software, but also include communications, which accounted  for about 57 per cent of total  ICT spending of 
US$3.4  trillion in 2007. 
6 OECD Information Technology Outlook 2008. S/C/W/300 
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  9. Rapid growth in computer and software services is part of a structural shift taking place in the 
ICT industry, with software and IT services accoun ting for an increasing share of total ICT spending. 
Total ICT spending figures include not only comput er equipment, services, and software, but also 
communications, which accounted for about 57 per cen t of the US$3.4 trillion spent in ICT in 2007.  
Within overall ICT spending, computer services h as the second largest share after communication at 
nearly 23 per cent of the total, while hardware and software account for 17 per cent and 10 per cent of 
the market, respectively.  Software will post the f astest growth at 10.6 per cent on a compound annual 
basis and services will grow at a rate of 9.4 per cent.  Computer services account for more than 25 per cent of total ICT spending in the United States,  France, United Kingdom and Canada.  Computer 
software accounts for more than 15 per cent of to tal spending in Switzerland, the Netherlands, the 
Czech Republic and Finland.  Moreover, ICT sp ending is increasing rapidly in many emerging 
economies.  For example, since 2003, annual ICT sp ending in China and Brazil has increased by at 
least 20 per cent and that for India and the Russian Federation by close to 30 per cent.
7  
 
Figure 1.  ICT Spending Growth, 2003-2007 and fo recast 2007-2011 
 
Source : Digital Planet 2008 (ICT spending in this diagram comprises data fo r communications, hardware  computer services 
and software.) 
 
10. Global ICT spending estimates were revised downw ards in the course of 2008.  Lower U.S.  
growth is spilling over into ICT employment, with  hiring at its lowest since 2004 as firms ease 
discretionary ICT spending.  However,  ICT spe nding has continued to grow strongly in the Asia-
Pacific region and in other non-OECD regions, partly because the falling U.S. dollar has reduced the cost of ICT products.  Driven by outsourcing and the development of new services, the software and 
computer services segments continue to grow, in spite of slower growth or declines in 
communications and computer equipment.  During 2 009, curtailed ICT investments in the finance and 
insurance sectors may effect overall spending.  However, long-term growth prospects in the ICT 
sector are considered to be good, as ICTs have beco me a fundamental part of the economic and social 
infrastructure.
8 
11. Key markets for ICT include major industry segments.  In 2005, the consumer market 
comprised nearly 23 per cent of total ICT spending, but consumer spending was predominantly on 
communications.  The business and government markets account for 77 per cent of ICT spending.  The  business market’s large share of total ICT spending is inspired  by businesses' efforts to contain 
costs boost labor productivity and enhance their competitiveness by using ICT equipment, software, 
                                                     
 
7 OECD Information Technology Outlook 2008. 
8 OECD Information Technology Outlook 2008.  S/C/W/300 
 Page 5 
 
 
  and services.9  The finance industry is by far the larg est spender on computer services and software, 
followed closely by governments (see Figure 2).  Other important ICT spending is accounted for by 
manufacturing, health care, professional services and t ourism.  It is with these markets in mind that 
ICT trade associations such as NASSCOM, in India, and WITSA, a global grouping of trade associations, closely follow WTO developments and tend to support broad-based trade liberalization. 
 
 Figure 2.  ICT Spending by Industry Segment, 2007 ($US billions) 
 
0 50 100 150 200 250 300 350 400Natural ResourcesConstructionEducationWholes aleRetailEnergy/UtilitiesHospitalityTransportationHealthcareManufacturingProfessional ServicesGovernmentFinanceCommunications
Hardware Software Services Communications
 
 Source : Digital Planet 2008  
 
12. Employment and value-added data  are not readily available except with respect to certain 
OECD economies.  Data for OECD show that over 10 million of people are employed in ICT-related 
services in 2006 compared with 5 million in ICT-rela ted manufacturing.  ICT services share of total 
services employment stands at about 5 per cent.  Moreover, employment in computer and related 
services and IT services has grown more rapidly than employment in the overall business services 
sector.  OECD also observed strong parallels between the shares of ICT in manufacturing and services 
value added and trade performance, reflecting the relative strengths of na tional firms and national 
factor endowments OECD notes, for example, th at Korea, Finland, Japan, Hungary, Ireland and 
Sweden have high manufacturing value added sh ares, relatively strong export performance, and 
consistent ICT trade surpluses.10 
13. Trade in computer and related services is grow ing rapidly. Although Europe and the United 
States still predominate, the sector is becoming a significant area of trade interest for developing countries. Overall, computer and information services exports  grew six times faster than total services 
exports, and developing economies' shares of computer  and information services exports are 
expanding rapidly – they rose from  4 per cent in 1995 to 28 per cent in 2005.
11  In developing Asia 
                                                      
9 Digital Planet 2008 
10 OECD, Information Technology Outlook 2008  
11 UNCTAD, "The ICT Producing Sector and the Emerging South," Chapter 2, Information Economy 
Report 2007-2008, United Nations: Geneva, 2008. S/C/W/300 
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  and the Latin American and the Caribbean region, co mputer and information services exports grew at 
rates of 30 per cent and 19 per cent, respectively, between 2000 and 2005.
12 
14. WTO data report that exports of computer ser vices by the top 15 markets in 2006 totalled 
US$101.5 billion (see Appendix Table A2).  US and extra-EU exports, combined, reached over 
US$28 billion.  India lead emerging economies with US$21 billion is exports. The Indian computer 
industry association, NASSCOM, predicts that Indi an software and services exports could reach 
US$60 billion by 2010-11.13  However, other emerging WTO Member economies such as Argentina, 
Costa Rica, Hong Kong-China, India, Korea, Malaysia, and Uruguay are also among the top 15 
exporters and recorded high annual increases of between 31 and 48 per cent over 2005 exports.  WTO 
data show that imports by the top 15 markets reach ed about US$ 52.6 billion in 2006.  Extra-EU and 
US imports accounted for over 80 per cent of total imports of the top 15.  Most major exporting 
markets are also among the major importers of computer services, a feature that reflects the global interdependence of the industry.    
15. OECD compiles trade in computer and information services (a broader measure than 
computer services) with individual EU countries broken out.
14  The OECD data on the top 10 
exporters and importers (see Table 2) show India as the leading national exporter of computer and IT 
services in 2006, with exports valued at US$29 b illion.  It shows Ireland and the United Kingdom out 
ahead of the United States in exports.  The OECD da ta shows that the imports of computer and IT 
services by the top ten importing countri es totaled US$42 billion in 2006.   
Table 2.  Top 10 Exporters & Importers of Computer & inform ation services, 2006, by country   
               (US$ millions) 
Exporters Importers   
 India 29,186  United States 11,092
 Ireland 20,682  Germany 8,947
 United Kingdom 11,949  United Kingdom 4,889
 United States 10,096  Netherlands 3,746
 Germany 9,385  Japan 3,126
 Canada 4,033  Sweden 2,245
 Spain 3,961  India 2,199
 Netherlands 3,902  Spain 2,094
 Sweden 3,567  Canada 2,020
 China 2,958  Brazil 2,005
   
Source :  OECD Information Technology Outlook 2008 (OECD Statistics on International Trade in 
Services, Volume I, detailed tables by Service Category, Sept 2008) 
 
                                                      
12 UNCTAD, "The ICT Producing Sector and the Emerging South," Chapter 2, Information Economy 
Report 2007-2008 , United Nations: Geneva, 2008. 
13 NASSCOM, Press Release from  NASSCOM India Leadership Forum,  Feb.  2009.  NASSCOM also 
projected that India's software and service exports will grow 16-17 per cent in 2008-09 to US$47 billion, lower 
than earlier estimates of US$50 billion due to the global economic slowdown.  It estimates that India's total IT-BPO industry (including hardware) will be worth US$ 71.7 billion in FY09, compared with US$3 billion in 
1998.   
14 The OECD data for trade in "computer and information services" draws its definition from BOP code 
262, which includes a range of data processing, bu reau, consulting, development, database and other 
subscription services.  See Annex A of OECD Information Technology Outlook 2008.  S/C/W/300 
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  16. Total reported OECD exports of computer and information services in 2006 stood at  
US$86 billion. The OECD exports grew by 20 per cen t a year from their 1996 levels of approximately 
US$14 billion.  OECD imports, at  US$54 billion in 2006, increased by more than 15 per cent a year from 1996 when exports totalled US$13 billion.  Also in 2006, total OECD exports of software sold 
as goods ( i.e. physical media that contain software) reached nearly US$19 billion and imports reached 
US$18 billion.  Between 1996 and 2006, these soft ware exports increased by 5.2 per cent a year, 
while imports increased by 5.6 per cent a year.
15     
17. It is worth noting that data measuring trade in ICT generally, and computer software in 
particular, are considered to underestimate the full extent of global activity in the sector in part 
because intra-firm transactions are not included in  trade data.  In 2006, for example, U.S. data on 
intra-firm trade illustrated that about US$8 billion of U.S. imports of computer and information 
services were traded among related parties, while  related party trade accounted for about US$2.5 
billion of US exports.16  According to the OECD, measurement is particularly difficult for software, 
intra-firm outsourcing, and ICT components that are incorporated in other products, which are often 
not included in the statistics.  Understated figures stem from the fact that border valuations are based 
on physical media, the common practice of bundling of software with hardware, and a lack of 
measurements of software transmitted electronica lly.  The latter accounts for a rapidly increasing 
share of sales, particularly in light of recently e volving commercial models referred to as "application 
service providers" and the trend in so-called software as a service (SAAS).17   
18. Such measurement issues apply a fortiori  to the nascent global activities of emerging markets 
in trade in computer services and software. As a re sult, they are prone to be under-represented in trade 
data.  In the early stages of development of these i ndustries, trade is often generated by intra-firm 
transactions (i.e. outsourcing to affiliates that a comp any has set up abroad).  Such intra firm activities 
are not included in trade statistics.  For example,  a few South African ICT services firms with very 
strong international linkages appear in the OECD listing of the world's top 250 ICT firms but little of 
their activity shows up in trade data.  Intra-fi rm trade is thought to account, in part, for  
inconsistencies between U.S.-India data on trade in ICTs.  The fact that India's figures are much 
higher than those recorded by the Un ited States is credited to a broade r definition used in India which, 
among other things, includes services performed by U.S. affiliates in India.18 
IV. GATS COMMITMENTS 
19. Commitments on computer and related services are included in 83 of the GATS schedules 
(counting as one the EC-12 schedule).  Of these, 73 commit on sub-sector (a) consultancy services 
related to the installation of hardware, 78 comm it on (b) software implementation services, 76 commit 
on (c) data processing services, 69 commit on (d) data base services, and 51 on (d) "other" computer 
services.  Overall, 60 governments (counting the EC- 12 individually), or 72 per cent of those with 
commitments, list all five subsectors.  Another 18  governments, or 22 per cent commit on four of the 
five sectors.  Except in one instance, the only excl uded sub-sector is the "other" category.  Appendix 
Table A1 contains a complete listing of sub-sectors committed by Members. 
                                                      
15 OECD, Information Technology Outlook 2008 . 
16 OECD, based on data from US Bureau of Economic Analysis (BEA), Survey of Current Business.  
Another source drawing upon BEA data suggests that over  US$11 billion one computer service, i.e.  systems 
design services, were purchased in 2005 from the U.S.  affiliates of foreign firms – see U.S.  International Trade 
Commission, Recent Trends in U.S.   Services Trade 2008, Inv.   No.  332-345, June 2008. 
17 OECD Information Technology Outlook 2008 .  In addition, trade statistics do not measure the value 
of copyrighted software sold in foreign markets when on ly the original software is transferred internationally 
and then copied for sale in the importing country.   
18 United States Government Accountability Office,  "U.S. and India Data on Offshoring Show 
Significant Differences", Report to Congressional Committees.  GAO-06-116, October 2005. S/C/W/300 
Page 8  
 
  20. Reflecting the relatively unregulated nature of  these services, the entry of sector-specific 
limitations is rare, although limitations indicated in the horizontal section of schedules would of 
course apply.  The incidence of full commitments is high; depending on the subsector concerned, between 62 and 70 per cent of schedules
19 containing computer services list no limitations on 
commercial presence, and commitments on consumption abroad with no limitations are slightly more 
common, between 65 and 72 per cent of schedules.  No industrialized economies have inscribed 
"unbound" in a subsector or mode of supply,  an entry more commonly found in developing 
economies' schedules.  At least half of developi ng economies with commitments on the sector listed 
cross-border supply as "unbound" for database services and consultancy related to the installation of 
hardware (subsectors a. and d.).    
21. Where sector-specific limitations are listed, they more frequently relate to commercial 
presence and most of them concern the type of lega l entity required and restrictions on the level of 
participation of foreign equity.  On national tr eatment, restrictions related to residency and 
licensing/registration appear in a few schedules.  The sector-specific limitations listed under presence 
of natural persons usually concern quantitative limitations of the numb er of persons and are slightly 
more common in respect to sub-service (a), cons ultancy services related to the installation of 
hardware.  No Members have listed MFN exempti ons specific to computer and related services.  
However, given the importance of commercial prese nce and movement of natural persons, some of 
the horizontal MFN exemptions listed relating to  these modes of supply may be relevant.   
V. TRADE AND REGULATORY ENVIRONMENT 
A. TRADE ENVIRONMENT AND BARRIERS  
22. The greater ease with which computer services and software can be delivered electronically 
today gives cross border supply a prominence in the sector that cannot be neglected and that will continue to grow.  Despite this, however, proximity to the customer remains important.  It can allow 
firms to better identify market opportunities, more carefully tailor services to clients needs, and 
clearly understand cultural, administrative and regulatory issues.  Therefore, firms active in the sector 
often combine modes of supply to achieve their full gamut of operations.  Global sourcing among 
affiliates of companies is one example of how the modes of supply work in conjunction.  Few barriers 
have been erected to cross-borde r supply, although that does not imply that free cross-border trade can 
be taken for granted.  The fact that some laws have  been instituted in recent years to restrict foreign 
sourcing of  services under government procurement procedures, although not covered by GATS at 
present
20, illustrates that it may be possible to do so.   
23. The output and competitiveness of the computer service and software segments, and the ICT 
sector in general, depend on highly qualified rese arch personnel and employees with well-developed 
technical skills.  This means that the temporary movement of persons, mode  4, is particularly 
important even when other modes of supply are us ed.  Firms move personnel between affiliates and 
independent companies to ensure management and quality controls, which can sometimes be a 
drawback of foreign sourcing, and to ensure that the right skills are available in the locations where 
they are needed.  Computer and IT services firms in Europe and the United States have for many 
years urged their governments to ease restriction on related work permits and visas.  Moreover, 
                                                      
19 In these figures, Members States of the EC-12 are counted as a single schedule.   
 20 As per GATS Article XIII, government procurement policies are not at present covered by GATS 
disciplines, however, as noted above,  governments are the second larges t spenders on computer and related 
services after the finance industry.  Some Members are signatories to the plurilateral WTO Agreement on Government Procurement.  Each signatory governments may indicate which procuring entities and which 
services they wish to subject to coverage of the Agreement.  S/C/W/300 
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  without the face-to-face contact that open access for business visito rs permits, companies cannot 
easily secure foreign contracts for services that might subsequently be provided across the border.   
24. What few trade barriers that are maintained in  the sector are a source of concern, because 
firms in this highly competitive industry must con tinually innovate and move  quickly to adapt to 
changing market conditions.  In a Report by the Ch airman of the Special Session of the Council for 
Trade in Services to the TNC, Members identified certa in restrictions to trade in computer and related 
services as candidates for reduction or elimination from schedules of commitments.  These included foreign equity limits, residency requireme nts, and establishment prerequisites.
21  The Report also cited 
as an objective the removal of "unbound" entries in m ode 1.  A plurilateral request circulated by a 
group of Members confirmed the thrust of the Ch airman's report, calling essentially for barrier-free 
commitments on computer and related services.   
25. Although a few large firms in the industry are well known, computer services and software 
companies are, in general, small- and medium-sized firms, often smaller than firms in other segments of the ICT Industry.
22  There is also a spin-off and incuba tor phenomenon in the industry that 
contributes to the creation of new, small companies with considerable frequency.  For this reason, 
trade impediments and regulatory obstacles, even the more subtle ones, can loom large from the 
perspective of small- and medium-sized enterpri ses that may be less well equipped to address them 
than large companies. 
B. RELATED REGULATORY MEASURES AND POLICY ISSUES  
26. Government policies and practices also have significance; a variety of government measures 
have an effect on the growth and development of computer and rela ted services.  Key areas include 
labour policies (work permits/vis as, education, training), resear ch and development support, 
protection of intellectual property rights, technical  standards, tariffs on computer equipment, and 
government procurement.   
27. The previous Secretariat Note on this sector  highlighted research and development (R&D) 
policies.  These remain important issues for the sect or.  For example, business enterprise expenditure 
on R&D (BERD) in the OECD area reached US$563  billion in 2006 and accounted for about 70 per 
cent of total OECD R&D.23  Indian and Chinese IT firms are also among top R&D spenders.  
Employment in computer services and software related R&D is also significant, with 943,000 R&D 
personnel in the ICT sector in the OECD in 2006. Si gnificant proportions of ICT-related employment, 
compared with total R&D employment, are repor ted in economies such as Chinese Taipei and 
Singapore.  Some data on R&D expenditures and em ployment are presented in Appendix Figures A2-
A4.   
28. Other issues have gained prominence in recen t years as the supply of computer services and 
software on-line via either Internet or corporate networks has become more feasible.  These include 
intellectual property concerns, efforts to enhance infrastructure investment, particularly broadband, 
and on-line security and privacy.  The trend in on-line capabilities to deliver computer services and 
software will continue to expa nd as penetration of broadband technol ogies, currently at about 5 per 
cent globally, rises.  Greater bandwidth availability  has the potential, for example, to support an 
                                                      
 21 Report by the Chairman to the Trade Negotiations  Committee, Special Sessi on of The Council for 
Trade in Services, TN/S/2 3, 28 November 2005. 
 22 Average revenues of software and services firms in the OECD listing of top 250 ICT firms report 
average revenues of USD 9.8 billion and USD 6.6 billion, respectively.  Also, average market capitalisation IT 
services firms was less than USD 200 billion, compared with that of telecommunications services firms in the 
top 250, which approached USD 2 000 billion in 2007.  OECD Information Technology Outlook 2008.  
23 The industrial research and development is defined as R&D activities carried out in the business 
enterprise sector, regardless of the origin of funding.   OECD, Information Technology Outlook 2008, Ch.  3. S/C/W/300 
Page 10  
 
  emerging commercial model referred to as "cloud computing", whereby a service supplier may host 
not only data but also softwa re applications and servers.
24  It would further support an emerging trend 
in which companies no longer need to own a nd operate their own software and computing 
infrastructure.  In such an environment, data secu rity and privacy issues become more crucial to the 
success of the industry in gaining customers' confidence and trust.   
29. Also, as mentioned in the Secretariat Bac kground Note on Telecommunications Services,25 
many governments are designing policies and initiatives to encourage the spread of broadband services, 
often with consumers in mind.  However, the impl ications for businesses a nd the computer services 
industry are substantial.  Healthy price competiti on in broadband, leased lines, mobile and satellite 
services as means of delivery for computer and related services will be a key factor in the 
competitiveness of economies with companies active in  the sector.  Regarding intellectual property, 
Internet and other forms of on-line supply of services  have made it more difficult than in the past to 
police the copyrights and patents that have helped  promote an innovative culture in the computer 
services and software industries.  Such concerns  have prompted industry associations to focus 
increasingly on cybersecurity, Intern et governance and the enforcemen t of intellectual property rights.26     
30. Finally, it is worth noting some broader policy issues that have a bearing on trade and 
competitiveness in computer and related services.   These include equipment trade and tariffs, 
education (both generally and par ticularly in relation to IT skills), competition policy, and the 
liberalization of markets for IT-enabled services and ma jor IT user industries.  Policies with respect to 
mergers and acquisitions, for example, and othe r elements of competition law have increasing 
relevance as the industry and many of its key play ers emerge and mature from their early days as 
small, start-up companies.    
VI. CONCLUSIONS 
31. Compared with other mammoth sectors such as financial services, transport or 
telecommunications, the computer and related services sector is relatively small.  However, it is a fast growing and dynamic sector.  It has been a pioneer  in global sourcing and collaboration, and makes it 
possible for other sectors to do likewise.  Its products and services have served as a catalyst for 
globalization of business, trade and communications  and have opened up new vistas of trade 
opportunities for emerging economies, not only in the sector itself, but in many other IT-enabled services. 
32. Like other ICT-enabled business services, growth of trade in computer and related services 
relies on increased transnational investment, ease of globalized sourcing, labour skills and 
productivity, as well as the availability of modern and affordable communications infrastructures.  In 
its 2008 Information Economy Report, UNCTAD obser ved that "the expanding ICT industry and 
international sourcing offer a huge potential for devel oping countries.  At th e same time, competition 
will increase and countries ... will need to invest in  their domestic labour skills, telecommunication 
infrastructure and improving the investment climate".
27  Competition and an environment of minimal 
regulatory intervention are often credited with allowing  the computer and IT industry to flourish since 
it came into existence.  Competition, rather than  industry dominance by particular firms or the 
erection of impediments to trade, will be critical to upholding the tradition of innovation that has inspired the sector's growth and development.  In a report issued in April 2009, India's IT association 
                                                     
 
24 Weber, Jonathan, "Cloud Computing", Times Online , 5 May 2008. 
25 S/C/W/299. 
26 See, for example, a White Paper of the Busine ss Software Alliance, "Necessary Elements for 
Technology Growth".  
 27 UNCTAD, "The ICT Producing Sector and the Emerging South," Chapter 2, Information Economy 
Report 2007-2008, United Nations: Geneva, 2008.  S/C/W/300 
 Page 11 
 
 
  cited four major challenges for its industry that mi ght also be considered to apply in the global 
context.28  The challenges identified were: employ ability, or securing the necessary talent; 
infrastructure development;  a need for supportive government policies and vision;  and increased 
global competition from a wide array of emerging economies.  
 
 
_______________ 
 
 
                                                      
 28 NASSCOM, Perspective 2020, April 2009. S/C/W/300 
Page 12  
 
  REFERENCES 
 
 
ASOCIO, General Agreement on Trade in Serv ices: ASOCIO Policy Paper, May 2003.   
Business Software Alliance, White Paper: Necessary Elements for Technology Growth , BSA: 2008. 
Butler, Tom  and Ciaran Murphy, " An exploratory study on IS capabilities and assets in a small-to-
medium software enterprise ," Journal of Information Technology, 23: 330-344, December 2008.   
Coe, Neil M., The Externalisation of Producer Se rvices Debate: The UK Computer Services Sector, 
The Service Industries Journal , Volume 20, Issue 2 April 2000, pp. 64 – 81. 
Economist Intelligence Unit, How Technology Sectors Grow: Benchmarking IT Industry 
Competitiveness 2008, Report sponsored by the Bu siness Software Alliance, September 2008. 
infoDev, International Good Practice for Establishment of Sustainable IT Parks , prepared by Price 
Waterhouse Coopers India, ©2008: The World Bank. 
ITU, The Application of Information and Communi cation Technologies in the Least Developed 
Countries for Sustained Economic Growth , ITU:Geneva, 2004. 
Jarvenpaa, Sirkka L  and Ji-Ye Mao, " Operational capabilities development in mediated offshore 
software services modelsm " Journal of Information Technology, 23, pp. 3-17, March 2008. 
Kotlarsky, Julia , Ilan Oshri, Jos va n Hillegersberg and Kuldeep Kumar, " Globally distributed 
component-based software development: an explor atory study of knowledge management and work 
division ," Journal of Information Technology,  22, pp. 161-173, January, 2007. 
NASSCOM, Software Product Study , August 2008. 
NASSCOM, Perspective 2020 , April 2009. 
Organization for Economic Coop eration and Development, Information Technology Outlook 2008 , 
©OECD:  Paris, 2008. 
UNCTAD, "The ICT Producing Sector and the Emerging South," Chapter 2, Information Economy 
Report 2007-2008 , United Nations:  Geneva, 2008. 
UNCTAD, "Changing Dynamics of Global Computer Software and Services Industry: Implications 
for Developing Countries" UNCTAD/ITE/TEB/12, United Nations: 2002. 
Weber, Jonathan, "Cloud Computing", Times Online , 5 May 2008. 
World Information Technology and Services Association (WITSA), Digital Planet 2008.  
 
_______________ 
  S/C/W/300 
 Page 13 
 
 
  APPENDIX 
 
 
Figure A1.  Computer and Related Services: GATS Cla ssification List Entries and CPC Descriptions  
 UN 
CPC  W/ 120   
B.  Computer and Related Services  
 841 
842 
843 
844 
845+849 a.  Consultancy services related to the installation of computer hardware 
b.  Software implementation services   
c.  Data processing services   
d.  Data base services   
e.  Other    
W/ 
120 UN 
CPC UNCPC description 
Ba 841 Consultancy services related to the installation of computer hardware : assistance services to 
the clients in the installation of computer hardware  and computer networks. 
Bb 842 Software implementation services :  all services involving consultancy on, development and 
implementation of software, and defines "software"  as the sets of instructions required to 
make computers work and communicate, which may include a number of different 
programmes developed for specific applications (application software) and  situations in 
which the customer may have a choice of ready-made off-the-shelf programmes (packaged software), specifically developed programmes fo r its requirements (customized software) or a 
combination of the two.  The sub-categories are:  
 8421 Systems and software consulting services :  services of a general nature prior to the 
development of data processing systems and app lications.  It might be management services, 
project planning services, etc,  
 8422 Systems analysis services :  include analysing the clients' needs, defining functional 
specification, and setting up the team, as well as project management, technical coordination and integration and definition of the systems architecture  
 8423 Systems design services :  include technical solutions, with respect to methodology, quality-
assurance, choice of equipment software packages or new technologies, etc. 
 8424 Programming services : the implementation phase, i.e.  writing and debugging programmes, 
conducting tests, and editing documentation 
 8425 Systems maintenance services :  consulting and technical assi stance services of software 
products in use, rewriting or changing exis ting programmes or systems, and maintaining up-
to-date software documentation and manuals and specialist work, such as conversions 
Bc 843/ 
8431 Data processing services:   or "input preparation services" include data recording services such 
as key punching, optical scanning or other methods for data entry 
 8432 Data-processing and tabulation services  consisting of services such as data processing and 
tabulation services, computer  calculating services, and re ntal of computer time 
 8433 Time-sharing services : UNCPC states that there is no clear distinction between 8432 and 
8433, noting that computer time only is bought;  if it is bought from the customer's premises, telecommunications services are al so bought.  Data processing or tabulation services may also 
be bought from a service bureau.   
 8439 Other data processing services :  consisting of services which manage the full operations of a 
customer's facilities under contract:  computer-r oom environmental quality control services;  
management services of in-place computer equipment combinations;  and management 
services of computer work flows and distributions 
Bd 844 Data base services :  all services provided from primarily structured databases through a 
communication network.  The UNCPC specifically excludes "data and message transmission 
services"  which it classifies under telecomm unications services (as 7523) and  excludes  
documentation retrieval services classified as library services (as 96311) 
Be 849 Other computer services:   services for which UNCPC lists two sub-categories 
 8491 Data preparation services : services for clients not involving data processing services 
 8499 Other computer services  n.e.c.:  training staff of clients and other professional services S/C/W/300 
Page 14  
 
  Table A1.  GATS commitments on Com puter and Related Services, May 2009 
  01.B.a. 01.B.b. 01.B.c. 01.B.d. 01.B.e. Total 
Albania X X X X X 5 
Antigua and Barbuda   X X X   3 
Argentina X X X X X 5 
Armenia X X X X X 5 
Australia X X X   X 4 
Austria X X X X X 5 
Barbados   X       1 
Botswana X X X X X 5 
Brunei Darussalam X X X X X 5 
Bulgaria X X X X X 5 
Cambodia X X X X X 5 
Canada X X X X X 5 
Cape Verde X X X X X 5 
China X X X   X 4 
Colombia X X X X   4 
Costa Rica X X X X   4 
Croatia X X X X X 5 
Cuba   X       1 
Cyprus X X X X   4 
Czech Republic X X X X X 5 
Dominican Republic X X X X X 5 
Ecuador X X X X   4 
El Salvador     X     1 
Estonia X X X X X 5 
European Community X X X X X 5 
Finland X X X X X 5 
FYR Macedonia X X X X X 5 
Gambia X X X X X 5 
Georgia X X X X X 5 
Guatemala   X X     2 
Honduras   X X     2 
Hong Kong X X X X   4 
Hungary X X X X   4 
Iceland X X X X X 5 
India X X X X X 5 
Indonesia X X       2 
Israel X X X X   4 
Jamaica   X X X   3 
Japan X X X X X 5 
Jordan X X X X X 5 
Korea RP X X X X X 5 
Kuwait X X X X   4 
Kyrgyz Republic X X X X X 5 
Latvia X X X X X 5 
Lesotho X X X X X 5 
Liechtenstein X X X X X 5 
Lithuania X X X X X 5  S/C/W/300 
 Page 15 
 
 
    01.B.a. 01.B.b. 01.B.c. 01.B.d. 01.B.e. Total 
Malaysia X X   X   3 
Maldives X X X X   4 
Mexico     X     1 
Moldova X X X X X 5 
Morocco X         1 
Nepal X X X X X 5 
New Zealand X X X X   4 
Nicaragua X X X X   4 
Norway X X X X X 5 
Oman X X X X X 5 
Pakistan X X X X   4 
Panama X X X X X 5 
Papua New Guinea X         1 
Poland X X X X   4 
Qatar X X X X   4 
Romania X X X X X 5 
Saudi Arabia X X X X X 5 
Sierra Leone X X X X X 5 
Singapore   X X X   3 
Slovak Republic X X X X X 5 
Slovenia X X X X X 5 
South Africa X X X X X 5 
Swaziland X         1 
Sweden X X X X X 5 
Switzerland X X X X X 5 
Chinese Taipei X X X X X 5 
Thailand X X X X   4 
Tonga X X X X X 5 
Trinidad and Tobago   X X     2 
Turkey X X X     3 
Ukraine X X X X X 5 
United Arab Emirates X X X X   4 
Uruguay X X X X X 5 
USA X X X X X 5 
Venezuela X X X X X 5 
Viet Nam X X X X X 5 
Total schedules (83)* 73 78 76 69 51  
    
* Total governments equals 94 counti ng EC12 Member states Individually  
       
Legend       
01.B.a.  Consultancy Services Related to the Installation of Computer 
01.B.b.  Software Implementation Services 
01.B.c.  Data Processing Services 
01.B.d.  Data Base Services 
01.B.e.  Other       
  
  S/C/W/300 
Page 16 
Table A2.  Major Exporters and Impo rters of Computer Services, 2006 (US$ millions and percentages)  
 
Rank Exporters Value Share in 
15 
economies Annual 
percentage 
change   Rank   Importers Value Share in 
15 
economies Annual 
percentage 
change 
 
1   European Union (27) 60398 59.5 14  1   European Union (27) 32439 61.7 14 
           Extra-EU (27) exports 22225 21.9 27             Extra-EU (27) imports 11081 21.1 14 
2   India  a 21061 20.7 ...  2   United States  b  10522 20.0 24 
3   United States  b  6208 6.1 8  3   India 1979 3.8 61 
4   Israel 5289 5.2 17  4   Brazil 1947 3.7 18 
5   Canada 3583 3.5 3  5   Canada 1401 2.7 11 
6   Norway 1376 1.4 53  6   Norway 1268 2.4 26 
7   Australia 1040 1.0 19  7   Australia 915 1.7 16 
8   Russian Federation 576 0.6 54  8   Malaysia 518 1.0 37 
9   Malaysia 572 0.6 31  9   Russian Federation 476 0.9 26 
10   Costa Rica 371 0.4 46  10   Korea, Republic of 311 0.6    ... 
11   Argentina 342 0.3 48  11   Hong Kong, China 310 0.6 -16 
12   Hong Kong, China 301 0.3 45  12   Argentina 206 0.4 13 
13   Korea, Republic of 182 0. 2 ...  13   Colombia 132 0.3 20 
14   Uruguay 122 0.1 47  14   Syrian Arab Republic 95 0.2 -5 
15   Sri Lanka 98 0.1 19  15   Philippines 67 0.1 8 
    Above 15 101520 100.0 -     Above 15 52585 100.0    - 
             
a  Secretariat estimate. 
b  Includes affiliated information services transactions.         
 
Note :  Based on information available to the Secretariat. As certain  major traders in computer and information services do not repo rt the item computer services 
separately, they may not appear in the list.  Fo r more information on asymmetries, see the Met  
 
Source: WTO S/C/W/300 
 Page 17 
 
 
  Table A3.  Total Computer Services Spending (US$ millions)                 
                    
Region/Country 2003 2004 2005 2006 2007 2008 2009 2010 2011
          
North America 266,014.6 290,473.8 311,791.1 328,086.2 340,276.9 347,628.9 357,497.2 369,264.5 382,791.8 
Canada 14,227.2 15,968.7 17,760.1 19,257.4 20,945.8 22,064.5 22,724.2 23,506.4 24,395.3 
Mexico 1,173.8 1,386.6 1,587.0 1,759.2 1,838.5 1,916.9 2,076.0 2,223.1 2,363.3 
United States 250,613.6 273,118.5 292,444.0 307,069.5 317,492.6 323,647.5 332,697.0 343,534.9 356,033.2 
Latin America 4,745.7 6,061.1 7,739.4 9,276.7 10,398.6 11,488.8 12,662.6 13,535.4 14,366.4 
Argentina 363.1 473.7 611.0 759.4 853.8 959.6 1,087.8 1,201.7 1,316.0 
Bolivia 34.1 37.9 40.6 44.7 47.5 51.0 55.2 59.1 63.2 
Brazil 3,151.4 3,988.2 5,111.1 6,119.8 6,826.3 7,554.2 8,314.5 8,812.8 9,265.8 
Chile 236.0 310.8 389.5 459.7 507.1 550.8 599.7 642.0 685.5 
Colombia 233.0 304.5 389.2 449.6 513.2 551.7 603.1 650.6 699.6 
Costa Rica 65.0 75.7 88.7 102.5 109.7 121.6 133.8 145.3 157.5 
Ecuador 50.9 63.0 74.6 89.3 94.1 99.2 108.6 117.7 127.3 
Honduras 32.7 38.9 46.0 52.8 57.3 61.6 67.1 71.9 76.1 
Jamaica 33.6 36.8 40.7 45.2 45.2 46.3 48.4 50.1 52.4 
Panama 87.4 103.2 121.2 133.0 142.0 153.5 166.6 178.2 189.4 
Peru 169.5 212.6 264.8 316.4 351.4 391.4 434.6 473.2 511.3 
Uruguay 52.3 64.8 83.5 96.4 105.6 117.4 128.1 138.0 147.3 
Venezuela 236.8 350.9 478.5 607.9 745.1 830.3 915.0 995.0 1,075.2 
Western Europe 164,378.0 187,094.5 198,866.9 212,608.7 225,920.4 234,426.0 242,781.2 254,476.9 271,585.9 
Austria 2,755.7 3,128.8 3,350.8 3,567.5 3,788.0 3,938.1 4,064.5 4,240.8 4,522.6 
Belgium 3,532.7 4,096.9 4,365.9 4,652.7 5,001.8 5,252.8 5,461.9 5,745.5 6,174.9 
Denmark 2,859.1 3,268.5 3,529.0 3,832.3 4,083.8 4,291.3 4,475.5 4,721.2 5,082.4 
Finland 1,756.4 2,039.0 2,194.9 2,364.4 2,569.2 2,703.5 2,818.6 2,969.5 3,193.6 
France 32,149.4 36,401.7 38,578.4 40,510.3 42,620.4 44,026.2 45,199.5 47,002.3 50,031.0 
Germany 36,124.0 40,707.8 42,643.0 44,119.0 46,481.7 47,648.9 48,597.2 50,168.8 52,978.0 
Greece 821.3 970.3 1,071.4 1,368.4 1,457.6 1,559.6 1,642.1 1,744.6 1,893.5 
Ireland 1,129.3 1,326.0 1,416.9 1,576.7 1,735.6 1,843.8 1,943.8 2,064.9 2,240.0 
Italy 16,662.1 18,856.0 19,845.1 21,181.7 22,503.3 23,408.1 24,156.4 25,221.2 26,922.2 
Netherlands 7,364.1 8,480.6 9,177.3 9,943.7 10,603.2 11,138.7 11,597.8 12,213.8 13,124.1 
Norway 2,291.8 2,691.2 3,121.5 3,413.5 3,719.2 4,006.5 4,200.0 4,448.3 4,808.2 
Portugal 873.7 979.1 1,044.9 1,129.9 1,200.2 1,266.8 1,318.3 1,386.8 1,492.4 
Spain 5,316.0 6,104.9 6,672.3 7,455.6 7,960.9 8,404.1 8,760.8 9,211.4 9,907.0 
Sweden 6,389.3 7,401.3 7,881.4 8,425.3 8,936.6 9,338.5 9,736.7 10,271.1 11,047.9 
Switzerland 5,127.1 5,636.5 5,838.8 6,229.6 6,449.1 6,671.1 6,874.5 7,155.3 7,576.3 
Turkey 1,315.6 2,057.1 2,789.9 3,568.4 4,283.5 5,020.3 5,679.4 6,305.1 6,936.8 
United Kingdom 37,910.6 42,948.8 45,345.4 49,269.8 52,526.3 53,907.9 56,254.5 59,606.3 63,655.3 
Eastern Europe 4,588.0 6,077.7 7,321.0 8,563.3 9,968.2 11,242.5 12,346.8 13,419.0 14,474.2 
Bulgaria 110.0 131.8 147.0 164.6 182.0 200.3 211.6 221.2 232.8 
Czech Republic 718.8 909.3 1,046.3 1,175.8 1, 344.5 1,488.9 1,616. 7 1,727.4 1,836.1 
Hungary 471.6 568.1 621.6 679.1 746.0 806.1 855.6 902.2 947.6 
Poland 1,213.6 1,507.2 1,728.4 1,948.6 2,230.3 2,520.9 2,708.1 2,865.8 3,031.4 
Romania 160.1 207.1 260.4 306.7 368.8 397.3 428.8 464.4 516.2 
Russia 1,418.7 2,101.6 2,724.7 3,387.4 4,033.7 4,633.8 5,202.6 5,797.6 6,353.2 
Slovakia 301.9 358.2 398.5 423.1 480.9 526.9 562.6 592.3 622.1 
Slovenia 82.5 109.2 131.6 153.9 179.1 202.0 221.9 241.2 260.1 
Ukraine 110.9 185.3 262.5 324.3 402.9 466.2 538.8 606.9 674.8 S/C/W/300 
Page 18  
 
                      
Region/Country 2003 2004 2005 2006 2007 2008 2009 2010 2011
Asia-Pacific 78,192.2 89,347.5 97,769.9 106,986.6 115,228.8 123,435.4 131,489.0 139,856.4 148,017.0 
Australia 6,021.7 6,784.1 7,261.0 7,933.3 8,430.9 8,853.7 9,289.2 9,802.4 10,262.2 
Bangladesh 315.3 326.6 344.5 377.2 418.2 439.2 462.3 489.5 513.6 
China 5,480.6 9,813.8 13,656.7 17,266.3 21,346.8 24,782.5 28,199.1 31,217.1 34,187.6 
Hong Kong 689.9 756.8 790.5 890.9 912.2 945.3 990.7 1,055.8 1,123.9 
India 3,160.5 3,777.1 4,328.5 5,065.5 5,854.9 6,391.0 6,853.8 7,393.7 7,976.0 
Indonesia 454.6 503.1 581.9 736.0 841.3 872.6 921.5 986.6 1,062.0 
Japan 51,090.7 54,681.9 56,550.5 58,677.5 59,949.5 62,732.5 65,377.5 68,269.5 70,994.7 
Malaysia 580.4 695.8 803.9 894.9 1,030.5 1,102.4 1,178.9 1,264.1 1,348.0 
New Zealand 885.0 952.4 1,007.0 1,053.1 1,130.5 1,175.2 1,222.1 1,279.3 1,337.4 
Pakistan 639.3 721.2 834.8 990.7 1,058.8 1,123.4 1,189.0 1,261.5 1,331.7 
Philippines 496.8 743.4 965.2 1,227.9 1,419.8 1,610.1 1,762.6 1,927.1 2,092.6 
Republic of Korea 4,711.0 5,446.9 6,179.8 7,009.7 7,607.5 7,938.3 8,272.0 8,747.5 9,260.9 
Singapore 1,450.9 1,622.6 1,738.8 1,862.2 2,005.4 2,115.5 2,226.5 2,346.6 2,457.4 
Sri Lanka 142.4 159.9 175.7 197.5 213.2 227.1 240.6 255.7 270.1 
Chinese Taipei 1,349.8 1,526.7 1,604.9 1,705.7 1,776.6 1,833.5 1,936.0 2,090.2 2,249.7 
Thailand 489.4 568.1 653.8 778.5 887.8 923.9 974.0 1,051.6 1,106.3 
Vietnam 233.9 267.2 292.4 320.0 344.7 369.2 393.3 418.3 442.7 
Middle East 2,912.5 3,655.1 4,220.3 4,854.5 5,320.9 5,847.0 6,469.2 7,079.3 7,752.0 
Egypt 168.8 214.6 260.4 297.9 337.7 374.6 411.1 449.9 486.5 
Iran 459.8 657.7 756.0 937.1 1,085.0 1,226.9 1,391.2 1,539.0 1,691.4 
Israel 1,093.1 1,240.6 1,340.6 1,492.1 1,583.4 1,666.6 1,770.5 1,906.2 2,087.2 
Jordan 42.9 53.2 59.8 66.0 71.1 76.4 83.4 89.6 95.7 
Kuwait 144.0 198.1 256.9 307.7 343.3 394.5 447.7 495.0 542.0 
Saudi Arabia 604.7 789.6 967.9 1,088.2 1,170.8 1,306.3 1,478.4 1,629.0 1,786.3 
UAE 399.3 501.2 578.7 665.6 729.6 801.7 887.0 970.7 1,062.9 
Africa 1,989.2 2,741.9 3,322.9 4,069.8 4,564.3 5,183.0 5,797.8 6,341.9 6,891.3 
Algeria 68.0 93.8 113.6 139.2 156.1 177.2 198.3 216.9 235.6 
Cameroon 16.7 20.8 24.1 28.5 32.5 37.1 40.0 43.0 46.1 
Kenya 49.0 64.4 77.8 101.4 123.7 136.0 152.6 167.2 181.5 
Morocco 186.5 239.5 262.9 322.3 349.8 387.0 422.3 451.4 483.8 
Nigeria 31.7 43.8 53.0 64.9 72.8 82.7 92.5 101.2 110.0 
Senegal 33.9 47.4 60.1 77.6 90.0 104.5 117.5 129.3 141.3 
South Africa 1,498.3 2,134.8 2,625.6 3,210.3 3,601.1 4,104.6 4,604.1 5,046.3 5,490.9 
Tunisia 62.6 83.7 91.7 109.7 121.9 136.4 152.1 167.1 181.7 
Zimbabwe 42.5 13.6 14.2 15.9 16.5 17.5 18.5 19.5 20.4 
World Total 522,820.3 585,451.6 631,031.6 674,445.8 711,678.0 739,251.6 769,043.8 803,973.5 845,878.6 
 
Source : Digital Planet 2008  S/C/W/300 
 Page 19 
 
 
  Table A4.  Total Computer Software Spending (U S$ millions)                  
                    
Region/Country 2003 2004 2005 2006 2007 2008 2009 2010 2011 
          
North America 96,689.3 107,747.6 117,862.5 124,818.6 130,312.2 133,984.8 144,309.6 149,854.7 156,069.2 
Canada 5,702.0 6,567.5 7,463.7 8,162.0 8,949.7 9,493.3 10,246.7 10,649.4 11,098.8 
Mexico 549.2 622.7 692.9 753.7 783.7 806.0 869.7 939.7 1,008.8 
United States 90,438.1 100,557.3 109,706.0 115,902.8 120,578.7 123,685.5 133,193.2 138,265.6 143,961.6 
Latin America 1,895.8 2,315.7 2,848.8 3,339.9 3,686.9 4,005.8 4,364.7 4,653.0 4,916.3 
Argentina 153.7 193.1 238.8 288.4 316.5 348.4 390.7 431.8 473.6 
Bolivia 13.6 14.9 15.7 17.2 18.4 19.8 21.6 23.4 25.3 
Brazil 1,186.0 1,435.7 1,776.3 2,088.8 2,299.9 2,510.5 2,737.0 2,890.7 3,016.2 
Chile 93.8 120.4 147.3 172.0 186.0 198.6 214.1 229.9 245.6 
Colombia 109.7 137.9 170.2 190.7 214.7 226.3 243.9 262.3 281.5 
Costa Rica 42.8 47.4 53.5 60.2 63.0 68.3 73.9 79.8 86.1 
Ecuador 26.1 30.9 35.8 41.8 43.5 45.4 49.2 53.2 57.6 
Honduras 21.3 24.6 28.5 31.9 34.2 36.3 39.1 41.8 44.1 
Jamaica 21.6 23.4 26.3 28.8 29.0 29.8 31.0 32.2 33.8 
Panama 28.3 32.6 37.4 40.5 42.4 45.0 48.1 51.1 54.0 
Peru 79.4 94.8 113.4 130.3 141.2 153.8 167.8 181.6 195.4 
Uruguay 21.8 26.3 33.0 37.1 40.0 43.9 47.3 50.8 54.2 
Venezuela 97.9 134.0 172.7 212.2 258.1 279.6 301.0 324.4 349.0 
Western Europe 71,811.9 84,313.7 91,659.6 100,668.4 109,915.8 115,862.1 121,844.9 129,300.4 139,392.1 
Austria 1,526.0 1,883.4 2,132.7 2,394.0 2,679.3 2,879.0 3,064.5 3,282.1 3,577.2 
Belguim 1,783.5 2,254.3 2,540.0 2,846.0 3,206.9 3,467.4 3,703.2 3,981.0 4,355.7 
Denmark 1,295.1 1,592.3 1,798.7 2,030.2 2,250.2 2,422.4 2,585.3 2,779.6 3,038.7 
Finland 1,034.5 1,296.4 1,464.5 1,642.4 1,856.0 1,999.4 2,132.2 2,288.8 2,499.2 
France 10,821.5 12,417.1 13,238.5 14,093.5 15,136.0 15,799.0 16,389.9 17,195.6 18,440.2 
Germany 15,890.9 18,127.7 19,191.4 20,253.7 21,714.6 22,476.0 23,190.5 24,183.1 25,739.2 
Greece 560.9 707.0 817.9 1, 056.7 1,170.8 1, 280.8 1,379.1 1, 492.5 1,642.9 
Ireland 812.7 1,051.6 1,186.8 1,385.9 1,613.4 1,764.0 1,911.1 2,073.7 2,287.4 
Italy 6,841.4 7,826.9 8,313.3 8,981.3 9,734.3 10,210.0 10,635.2 11,171.8 11,981.9 
Netherlands 4,648.3 5,626.6 6,246.7 7,006.4 7,730.7 8,269.0 8,771.3 9,378.9 10,201.3 
Norway 1,064.4 1,365.0 1,669.9 1,906.2 2,167.4 2,388.4 2,561.0 2,761.5 3,027.6 
Portugal 631.5 767.0 861.2 975.3 1,083.0 1,171.3 1,249.4 1,341.0 1,465.7 
Spain 3,508.4 4,305.1 4,920.0 5,703.7 6,348.6 6,858.5 7,319.1 7,845.8 8,565.9 
Sweden 2,361.4 2,883.9 3,168.1 3,506.5 3,847.2 4,106.7 4,366.7 4,681.4 5,101.6 
Switzerland 3,639.2 4,460.8 4,945.0 5,672.2 6,243.9 6,721.9 7,183.3 7,716.2 8,403.2 
Turkey 935.2 1,287.0 1,659.7 2,051.7 2,409.9 2,773.8 3,091.8 3,412.6 3,737.9 
United Kingdom 14,457.1 16,461.5 17,505.3 19,162.7 20,723.6 21,274.9 22,311.3 23,714.7 25,326.8 
Eastern Europe 4,189.4 5,328.5 6,362.2 7,379.3 8,549.1 9,580.2 10,485.0 11,413.5 12,342.0 
Bulgaria 96.8 114.9 131.4 148.6 166.5 183.6 196.0 208.3 221.5 
Czech Republic 909.2 1,197. 1 1,450.9 1,689.6 1, 986.3 2,239.8 2,469. 3 2,689.6 2,910.3 
Hungary 684.4 801.7 883.9 973.0 1,074.9 1,163.1 1,237.5 1,314.6 1,391.2 
Poland 840.5 1,025.1 1,184.3 1,344.0 1,544.9 1,741.2 1,878.5 2,009.1 2,145.8 
Romania 153.4 185.4 224.4 257.3 300.9 323.7 347.5 375.2 411.7 
Russia 1,121.6 1,519.7 1,904.7 2,306.2 2,701.4 3,063.2 3,402.8 3,776.7 4,134.3 
Slovakia 208.7 239.7 266.9 283.9 321.8 351.6 375.8 398.6 421.7 
Slovenia 89.0 113.2 135.1 156.7 181.6 203.5 222.7 242.4 262.1 
Ukraine 86.0 131.9 180.6 220.0 270.8 310.6 355.0 399.1 443.3 S/C/W/300 
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Region/Country 2003 2004 2005 2006 2007 2008 2009 2010 2011 
Asia-Pacific 21,003.3 25,868.1 30,622.8 34,929.9 38,884.1 42,712.1 46,470.9 50,456.1 54,481.5 
Australia 2,204.8 2,613.2 2,947.4 3,307.4 3,538.6 3,770.5 3,996.5 4,269.1 4,527.3 
Bangladesh 86.8 92.7 101.0 111.4 122.9 129.5 136.6 145.9 154.4 
China 3,339.5 5,541.6 7,878.0 9,937.3 12,314.6 14,376.2 16,444.8 18,430.7 20,440.6 
Hong Kong 320.6 355.2 380.2 430.0 444.2 462.9 486.5 520.6 556.9 
India 797.2 1,066.0 1,351.2 1,664.2 1,988.0 2,238.9 2,461.2 2,719.2 2,998.9 
Indonesia 275.2 395.5 537.4 705.2 835.5 935.7 1,037.7 1,151.7 1,272.5 
Japan 10,079.1 11,059.9 11,815.8 12,341.8 12,511.6 13,147.3 13,734.6 14,390.7 15,030.9 
Malaysia 351.9 415.3 488.1 541.4 618.7 664.9 712.7 767.2 821.8 
New Zealand 229.1 255.8 281.1 298.9 325.8 341.4 357.6 379.0 401.8 
Pakistan 176.5 225.5 289.6 365.4 409.0 451.4 492.6 538.0 583.5 
Philippines 129.9 143.1 164.7 189.6 212.4 230.9 239.9 253.9 269.1 
Republic of Korea 1,284.9 1,572.7 1,896.7 2,201.1 2,415.1 2,552.8 2,682.5 2,868.9 3,071.6 
Singapore 562.3 683.2 786.5 878.4 966.7 1,041.6 1,114.1 1,195.0 1,273.2 
Sri Lanka 28.2 35.5 43.3 51.1 57.3 63.1 68.5 74.6 80.7 
Chinese Taipei 732.8 839.5 912.4 981.3 1,028.9 1,071.9 1,134.8 1,228.1 1,325.3 
Thailand 306.4 452.6 606.3 762.3 912.9 1,033.4 1,152.9 1,287.7 1,418.3 
Vietnam 98.3 121.0 143.3 163.4 181.9 199.8 217.4 236.0 254.9 
Middle East 1,241.8 1,458.2 1,684.7 1,892.4 2,061.9 2,236.2 2,459.3 2,703.2 2,977.1 
Egypt 97.7 120.9 141.0 160.1 180.1 198.6 217.2 238.2 258.2 
Iran 192.2 229.8 261.8 306.9 347.4 380.2 424.4 470.3 518.8 
Israel 470.0 535.2 595.6 670.3 724.3 768.2 825.4 899.1 993.9 
Jordan 18.7 22.2 24.5 26.2 27.9 29.5 32.0 34.6 37.1 
Kuwait 69.0 86.2 107.9 126.0 138.2 156.5 175.9 194.9 213.9 
Saudi Arabia 263.5 310.4 376.5 403.7 426.9 467.9 525.5 581.6 641.6 
UAE 130.8 153.6 177.4 199.3 217.1 235.5 259.0 284.7 313.5 
Africa 1,127.8 1,493.7 1,786.4 2,145.7 2,401.8 2,702.2 2,998.3 3,278.7 3,563.9 
Algeria 46.8 62.0 74.1 89.0 99.7 112.1 124.4 136.1 147.9 
Cameroon 11.4 14.0 16.3 19.3 22.0 25.0 27.0 29.2 31.5 
Kenya 31.2 39.9 47.1 60.3 73.6 80.5 89.6 98.2 106.5 
Morocco 125.9 146.7 157.9 185.4 197.0 213.1 228.1 241.8 257.5 
Nigeria 22.1 29.3 35.1 42.1 47.1 53.0 58.8 64.3 69.9 
Senegal 19.6 27.1 34.2 43.5 50.4 58.1 65.1 71.8 78.6 
South Africa 814.0 1,124.0 1,367.6 1,642.9 1,843.2 2,084.5 2,322.0 2,546.2 2,773.1 
Tunisia 36.4 45.8 49.1 57.5 63.1 69.8 76.9 84.3 91.6 
Zimbabwe 20.3 4.9 5.1 5.7 5.8 6.1 6.4 6.8 7.1 
World Total 197,959.3 228,525.5 252,827.1 275,174.2 295,811.7 311,083.3 332,932.7 351,659.6 373,742.2 
 
Source : Digital Planet 2008 
  S/C/W/300 
 Page 21 
 
 
   
Figure A2.  BERD in computer and related services, 2006 or latest available yeara 
(Billions of current PPP US$ ) 
 
a.  2005 for Australia, France, Denmark, Germany, Greece, Icel and, Ireland, the Netherlands, Mexico, New Zealand, Portugal, 
Russian Federation, Spain, Sweden, th e United States.  2004 for Austria. 
 
Source:  OECD Information Technology Outlook 2008  (OECD, RDS database, June 2008).   S/C/W/300 
Page 22  
 
   
Figure A3.  BERD in software consultancy and supply, 2006 or latest available yeara 
(Billions of current PPP US$ )  
 
a.  2005 for Denmark, Germany, Iceland, Ireland, the Netherlands, Norway, Mexico, Po rtugal, Russian Federation, Spain, the 
United States.  2004 for Austria, France. 
 
Source:   OECD Information Technology Outlook 2008  (OECD, RDS database, June 2008).   
 
 
Figure A4.   Share of ICT R&D resea rchers in total R&D researchers, 20 06 or latest available year  
(%) 
 
0%10%20%30%40%50%60%70%
 
Source:   OECD Information Technology Outlook 2008  (OEC D, estimates based on RDS database, April 2008). 
 
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