Information Technology (IT)

Information technology (IT) broadly describes the processing and management of data in computer systems. Within IT's wide parameters are the hardware (including hard drives, modems, monitors, servers, mainframe systems, and routers) and software (word processing and spreadsheet programs, Web browsers, and databases) that make the movement, manipulation, and storage of information possible. Thus, IT also gives life to the Internet, the World Wide Web, and e-commerce. A 1999 Computer Weekly poll identified the World Wide Web (1989); the first IBM PC (1981); and COBOL, a high-level programming language created in 1959 and used for writing business software as the top three IT developments of all time. E-mail (1971); Visicalc (1979), the first spreadsheet program; MS-DOS (1980); and the Apple Macintosh computer (1984); were among the top 10.

From the early 1970s onward, computers and electronic information were increasingly critical elements of the corporate landscape. Large companies devoted entire departments to information technology. These IT departments went by a variety of names, including information systems (IS) and management information systems (MIS). E-commerce created additional demand for IT workers. Although there were many layoffs in the technical industry during the early 2000s due to poor market conditions and failing Internet companies, overall demand remained strong in mid-2001, according to InternetWeek. This was especially true for workers with e-commerce and Web development experience. InfoWorld identified plenty of opportunity for IT workers, especially those with the ability to use programming languages like Java and C++.

When the Internet and e-commerce exploded in popularity, many companies spent hefty sums on IT in an effort to keep up with or exceed the competition. According to Fortune, the amount spent on software and equipment increased from four percent annually in the last quarter of 1999 to 21 percent in the first quarter of 2000. However, due partly to worsening economic conditions, this had changed by March 2001. At that time, a survey by Merril Lynch found that chief information officers in the United States and Europe were planning to scale back IT spending on things like mainframe computers, printers, consulting, and outsourcing. Conversely, spending on Internet-related technologies, including servers, wireless products, and storage, was expected to remain strong. Information from International Data Corp. (IDC) forecast stronger growth in IT spending throughout the rest of the world, with the strongest potential in Australia, Western Europe, and developing markets like Latin America, the Middle East, Africa, Eastern Europe, and Asia.

The term IT includes a mind boggling number of different brands, variations, and kinds of computer systems, platforms, devices, applications, and products. As consumers and businesses purchase these products over time, issues of integration and compatibility frequently arise. Because of issues like this, companies rely on relationships with the vendors from whom they purchase products for technical advice and support. In addition to hiring IT professionals of their own, organizations also rely heavily on consultants to improve the functionality of systems and processes.

Although consultants often provide strategic value to companies, such is not always the case. Like other business practices, there are advantages and drawbacks to using consultants. As explained in Computerworld, "IT has always depended on strategic relationships with vendors and its heavy use of consultants to a degree that's unmatched in any other field of business. That's because no company can go it alone. The best consultants either provide special skills, handle the ever-growing IT workload and provide development and integration capabilities or take on the management of large-scale projects. The worst consultants believe their companies are smarter than their IT clients, instead of recognizing that they're extensions of their clients' resources."

Advances in IT and the widespread adoption of the Internet allowed e-commerce to develop and evolve. Some professionals held that by eliminating human involvement from business transactions, companies would achieve greater profits. While this may be true to a degree, the human element still was very important to a company's success in the early 2000s. Some leading organizations found customer service delivered by human employees to be an important differential in a competitive market where all players had access to similar technology. Thus, the human touch was still important for developing and maintaining customer relationships, problem solving, helping customers to understand and accept technology used for e-commerce, and more. As e-commerce evolves, so will IT. Each is a critical piece of a larger whole.