The use of information communications technology (ICT) needs to be enhanced in workplaces throughout New Zealand, a report from the Productivity Commission has indicated. The group's second interim report highlighted the need to raise the level of ICT skills, while giving organisations the help they need in embracing new technologies. Chair of the Productivity Commission Murray Sherwin explained how the services sector in particular could benefit from this, which in turn should bring advantages to the wider economy. He noted that this sector alone makes up around three-quarters of New Zealand's gross domestic product, making it an essential tool in ensuring international competitiveness. However, companies within the sector are failing to perform as well as in other nations, such as the UK and Australia. Mr Sherwin continued: "Competition drives innovation and gives consumers more choice, better products and lower prices. "Many businesses supply services to other firms, so giving consumers access to more information and improving competition law would make New Zealand firms more competitive on a world stage." These firms could benefit from the use of tools such as accounting software for small business, which has the potential to speed up every day processes and operations. The Productivity Commission highlighted that ICT is currently revolutionising the way businesses operate - but talent must be found to ensure future success. At the moment, there is a lack of skilled ICT professionals and managers with skills in this area, as well as a high initial cost of services. Efforts therefore need to be made at government level to encourage people to undertake the necessary qualifications and equip themselves with the skills that are so desperately needed. Cloud computing is one of the areas where businesses can invest to lower costs, but the group believes greater encouragement is needed to ensure their adoption.