Behind The Sound Bite
Gov. Deval Patrick, along with state officials and business executives, visited Brazil and Chile this month to urge collaboration between the South American nations and Massachusetts. Patrick’s delegation talked up the Bay State’s status as a leader in research and development and information technology (IT) companies. Members also attended a groundbreaking ceremony for a data research center being built in Rio de Janeiro by EMC Corp. of Hopkinton, one of the state’s largest IT employers.
What exactly is IT?
As defined by the UMass Donahue Institute, which released a detailed study in 2009 on the state’s IT employment picture, IT encompasses hardware, software, communications and services such as data hosting and systems development.
How healthy is that sector?
In the wake of the dot-com bubble burst in 2000, employment at IT companies has shrunk in Massachusetts. The Donahue Institute found that the sector shed nearly 62,000 jobs, about 25 percent, between the IT employment peak in 2000 and 2008. Interestingly, the state added 234 new firms during that time, which shows that the average IT firm is getting smaller in head count.
Are there signs for optimism?
Yes. Despite the declines, the sector remains vital to Massachusetts, accounting for one of every five wage dollars, according to a November report from the U.S. Bureau of Labor Statistics. And there are some corporate giants in the IT sector in Massachusetts, including EMC, which brought in $17 billion in revenue last year.
The top five software and hardware companies in Central Massachusetts account for more than 15,000 jobs in the region, according to Worcester Business Journal surveys of those companies.
Patrick highlighted the fact that Massachusetts companies netted more than $700 million in venture capital in 2010 and that the state has become a hub for IT companies, containing more than four times the national average.
WBJ Web Partners
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