Canada, 2022: A Post-Pandemic Budget

Canada, 2022: A Post-Pandemic Budget

This IDC Market Perspective provides a snapshot of the ICT component of the 2022 Canadian federal budget.Canada is an established leader in technology, research, and innovation. The sectors generate C$100 billion annually and employs over 700,000 workers. There are over 1,000 private and publicly funded innovation centres with government and corporate funding of over C$25 billion annually. The rationale and drivers behind these investments in digital technologies or innovation won't be found in a government budget, but in business' desire to be competitive. The 2022 federal budget was comparatively thin around incentives and programs for ICT. The groundwork came before, in prior-year budgets. These budgets created a base that includes national broadband, cybersecurity, and digital adoption.Canadian IT firms need to take ownership of the challenges they face. Labour capacity and scaling capabilities are inhibiting growth. Sometimes IT firms are reluctant to take their own medicine. In this case, it means modernizing their own processes and systems and taking a customer-centric approach to business. The Canadian ICT market is strong and growing. This is the time to invest in the future."IT providers need to take advantage of the hand dealt to them in the prior year's budgets," says Mark Schrutt, strategic advisor, Innovation and Public Sector research. "This includes federal and provincial programs for attracting, retaining, and reskilling talent. There are also a number of tax incentives for IT investments, programs to expose organizations to international markets, and opportunities for private businesses and academia to work together."

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