Economic Implications for IT Industry

AU Dollar fluctuations:

Depreciation or Appreciation of AUD will directly impact the company in the IT industry. Especially any devaluation of currency will increase the cost of computer parts imported from other countries increasing the cost for the IT firms. Also any positive fluctuation of the currency will be advantageous for the company in terms of cost savings and procurement of IT inventory. Also appreciation of currency will provide higher incomes to the company in terms of providing IT services to other countries.

Economic growth: 

Higher economic growth  in Australia will increase investments to the IT industry resulting a boom within the industry. This will facilitate high revenues and investments in innovations, Research and development in the industry. The IT companies will have more funds to pump to new innovations resulting in growth of the industry. Indirectly it will result in high employment opportunities in the industry. 

Taxes and Tarif:

Favourable tax rates on IT equipment and parts will result in reduction in cost to the IT companies to source resources. Benefits can be obtained from suppliers on IT products such as chips, physical storage devices and computer parts. Tax reliefs on IT industry will encourage the companies to invest more and will promote more funds circulating in the industry.