Computer Peoples latest market report

1. IT market report
Quarter 1 2011
Compiled & designed by Neil Hulse, Computer People

2. Contents
Comment
A word from the Managing Director 3
Economic outlook
Headline market indicators 4
UK outlook 5
Inflation and the labour market 6
The recession - analysis 7
Oil crisis aftermath 8
CEBR predictions for 2011 9
Regional metrics
North East & North West 10
Yorkshire, Midlands, 11
East & South East 12
London & South West 13
Wales & Scotland 14
Northern Ireland 16
Table 1 - Labour market statistics 17
Market indicators
UK unemployment 18
Vacancies & redundancies 20
Perm market & role analysis 21
Agency Workers Regulations 22
The IT market
IT in finance sector 23
Broadband strategies 24
Demand for IT staff 25
How to find new IT recruits 27
IT news 28
Sources Computer Weekly | The Recruiter | The Times | Financial Times | Resourcing | Computing.co.uk | ITcontractor.com |
TheITjobboard.co.uk | ITjobswatch.co.uk | Salary Services | The Skills Market Report on Jobs | BBC Business | Bank of England | CIPD |
National Statistics.gov | Business7 | Office of National Statistics | Reuters | Centre for economics & business research (CEBR) | The
Recruitment & Employment Confederation (REC) | E-Skills | UK Bank of Scotland | CWjobs | British Chambers of Commerce

3. Comment
Economy Regional Marketplace IT market IT news
A word from the Managing Director…
2011 – The return of the candidate-driven market
In the past month the market has changed to one where top Jim Albert
candidates are seeing multiple offers, counter offers, and Jim Albert is the IT & Engineering
significant raises. This is a clear signal of a shift in hiring, Managing Director, for Adecco in
and requires a different approach by hiring managers. In the UK and Ireland.
short – here is a list of “to do’s”:
Based in London, his
responsibilities include the Spring
- Accelerate the pace of the interview/offer process. Technology, Computer People,
Good candidates are gone very quickly now. If you take Modis International, Roevin,
two weeks, as is common based on the last couple of and Glotel brands, operating in the
UK and throughout Europe.
years’ economy, most candidates will not be around
anymore. Prior to this role, Jim was the MD
at Modis International from 2007-
- Consider how to retain your current staff, as many are 2010, after running the global IT
consultancy Idea Integration,
likely to be looking and being approached. based in the United States.
- For contractors, consider longer term deals to lock Earlier in his career, he was one of
them in, as many are using breaks or renewal points to the original members of AT&T’s
find new roles. global outsourcing division.
An electrical engineer by
IT demands ‘business all-rounders’ education, Jim worked at Bell Labs
and in other technical and sales
The days have gone when an IT professional could excel in positions within the IT business
their role by solely being a master of the technical side of segments of AT&T.
their job.
The future for the IT professional is survival of the fittest:
those who embrace broader business skills have access to
greater and more exciting opportunities to lead
organisational change than ever before, while those that
don’t risk being pigeon-holed as back office implementers.
The message coming out of our conversations with
employers is loud and clear: they want much more than
technical and project management expertise. In short, the
future IT professional needs to be a master of many
disciplines – truly a business all-rounder.
3

4. Economy
Comment Regional Marketplace IT market IT news
Headline market indicators
- The UK economy is in recovery despite quarter four GDP decline
- Unemployment is expected to increase over the next year but at a slower rate
- The UK’s economy is set for an annual GDP growth of 1.3%
- Q4 unemployment rate was 7.9% and there were 2.5m unemployed people
- Annual growth in average earnings was 3.6% in the private sector and 4.4% in
the public sector
Year ends on a dip for UK economy
Gross Domestic Product decreased by 0.5% in the fourth quarter of 2010, compared
with an increase of 0.7% in the previous quarter. The GDP estimate was significantly
affected by the bad weather in December. The decline in the fourth quarter is due to
decreases in two of the component aggregate series, namely services and construction.
Business services and finance decreased by 0.7%, compared with zero growth in the
previous quarter. Computer services contributed most to the decline in this quarter.
UK GDP growth, quarter on quarter
Source: ONS
Service sector growth dampened
Growth in Britain’s service sector slowed sharply in February, a survey showed,
suggesting the economic recovery may be too fragile for an early interest rate rise.
February’s headline services PMI index fell to 52.6 from January’s eight-month high of
54.5, a peak that followed a contractionary reading in December blamed on snow. The
index, compiled by Markit/CIPS, had been expected to fall to 53.5.
4

5. Housing market ‘treading water’
UK house prices registered an unexpected modest bounce
in February, according to a closely watched index, leaving
overall prices slightly below where they stood one year ago.
The Nationwide House Price Index for February rose 0.3%
compared with a decline of 0.1% in January, leading to a
picture of a housing market that is treading water, rather “ A weakening
than falling, as sellers retreat from the market.
jobs market,
Increase in mortgage approvals muted economic
British mortgage approvals picked up more than expected in
growth, ultra-tight
January and mortgage lending rose to its highest in almost a
year, Bank of England figures showed. However, consumer
fiscal policy, plus
credit contracted at its fastest pace in over a year and
money supply growth remained weak, suggesting overall
well above target
credit conditions remained far from normal at a time of
economic uncertainty.
price inflation
and the greater
Manufacturing growth remains at record high prospect of an
British manufacturing growth held at a record level in
February and factory costs stayed near January’s survey
interest rate hike
high, suggesting price pressures are continuing to build. The
Markit/CIPS headline manufacturing Purchasing Managers’
sometime later
Index (PMI) stood at 61.5 in February, unchanged from
January. That was the highest since the survey began in
this year provide
1992 and above the consensus forecast of 61. all the
ingredients for a
Inflation will rise sharply says Mervyn King
‘perfect storm’ to
The Governor of the Bank of England, Mervyn King, has said
inflation will rise sharply in the first half of this year before hit the UK 4
falling back next year.
economy ”
But he said there were "large risks" that inflation could
overshoot or undershoot the Bank's 2% target. He reiterated
his belief that external factors, such as rising food and
energy prices, are the main cause of rising prices in the UK. Dr John Philpott, CIPD
Mr King said growth would be weaker than the Bank forecast
in November.
In the Bank's inflation report, the governor said that once
cost pressures from high commodity prices subside, "CPI
inflation will then fall back. But the extent to which it will do
so is uncertain, and there are large risks in both directions."
5

6. Inflation 2000-2010 (Percentage change over 12 months)
Source: ONS
Official figures showed that inflation, as measured by the Consumer Price Index (CPI),
rose to 4% in January from 3% in December. Measured by the Retail Price Index (RPI),
which includes mortgage interest payments, it rose to 5.1% from 4.8%.
Mr King was forced to write a letter to the Chancellor, George Osborne, to explain why
CPI inflation was twice the Bank's target rate. "Only time will tell. The judgements are
difficult", he concluded.
Labour market still showing signs of fragility
The labour market showed some weakness in quarter four 2010, with employment levels
falling by 68,000 jobs.
Between quarter four 2009 to quarter four 2010, total employment rose by 0.8%
(383,000). The most recent quarter, however, saw total employment fall by 0.2%
(68,000) compared to the previous three months. This may reflect changing situations
for individuals within the labour market.
Also, comparing quarter four 2010 with quarter four 2009:
- Full-time employment fell by less than 0.1% (5,000)
- Part-time employment grew by 2.9% (224,000)
- Self-employment grew by 2.4% (92,000)
- Employees grew by 0.4% (110,000)
Over the six quarters of economic contraction from quarter one 2008, total employment
fell by 600,000. In the 1980s recession, the final quarter of economic contraction saw
employment levels 619,000 lower than pre-recession level. At the end of the 1990s
recession, employment was 910,000 lower than it was prior to the recession.
6

7. The economy remains below the level of output
recorded before the start of the recession. GDP
has recovered about a third of the output lost
during the recession. In the past two recessions
it took just over three years for output to reach
pre-recession level.
The UK economy over the past 3 recessions
GDP fell 4.6% in the 1980s recession, by 2.5%
in the 1990s recession and by 6.4% in the 2000s
recession.
Exceptional weather conditions contributed
to fall in GDP
GDP fell by 0.5% in quarter four 2010. This
follows four consecutive quarters of economic
growth between quarter three 2009 and quarter
three 2010. The main areas contributing to the
decrease in the latest quarter are:
• Production industries output was up
0.9% (contributing 0.1% to GDP growth)
• Construction output decreased by 3.3%
(contributing -0.2%)
• Total services output was down 0.5%
(contributing -0.4%)
Although quarter four growth was negative, the
figure was influenced substantially by
exceptional weather conditions. These are
estimated to have accounted for 0.5% so that, in
underlying terms, growth was broadly flat.
7

8. Oil crisis could put us back into recession
Britain could be plunged back into recession by soaring oil prices, experts have warned.
Crude leapt to almost $120 a barrel, its highest for
nearly three years, on the back of the Libyan crisis.
Bankers at stockbroker Nomura said it could hit an
incredible $220. Petrol industry chiefs said
motorists face hikes of TEN PENCE per litre at the
pump - given the spiralling cost of crude and the
Chancellor's upcoming fuel duty hike.
British Gas said it could push up bills while soft
drink giant Britvic revealed the cost of plastic used
in bottles went up 20% in the past month.
Asda said families' disposable income in January
was a record £9 a week lower than a year ago.
Gerard Lyons, chief economist at Standard
Chartered, warned: "Britain is vulnerable. Could we go back into recession? Yes,
absolutely."
Oil fell back to $111.03 late last night on signs the Saudis will pump more oil to feed
global demand. The AA said petrol prices hit a new record - with unleaded averaging
129.05p per litre and diesel 134.41p.
CEBR predictions for 2011…
- Yet another Eurozone crisis in the spring if not before, when Spain and Italy
have to refinance in aggregate over €400 billion of bonds. The euro might break up at
this point, though European politicians are normally able to respond to a crisis and its
suspected that the cause will be the failure of most of the countries to take the tough
medicine necessary to make their economies competitive over the longer term. We give
it only a one in five chance of surviving in its present form for ten years. If the euro
doesn’t break up, this could be the year when it weakens substantially towards parity
with the dollar.
- Slower economic growth. As the boost from the end of de-stocking comes to an
end, countries will have to rely on the fundamentals - in the fast growing Eastern
economies, growth will have to slow because of inflationary fears. For the UK, all this will
combine with the effects of fiscal retrenchment as the government tries to bring
borrowing under control. A double dip for the world economy is not likely because of the
strength of the emerging economies. But it is well within the bounds of possibility for the
UK.
8

9. - Germany to be the Western economic superstar again. German
performance, in some sense subsidised by the euro which has the same effect for the
German economy that the cheap renminbi policy has for the Chinese economy, is likely
to continue to be stunning. With the costs of unification gradually absorbed and a highly
competitive exchange rate, Germany is setting the pace in Europe. One of the
interesting elements of Germany’s recent economic success has been the role of
immigrants – primarily Turks but increasingly from other countries – who now seem to be
boosting the German economy in the same way that their equivalents have boosted the
British economy in the past 20 years.
- A serious economic crisis in Japan. Japanese debt is now 200% of GDP and
if it grows will need foreign financing which may be difficult to achieve. It is likely that the
government will have to embark on fiscal retrenchment. Meanwhile, growth in the main
Asian export markets will slow and the aging population will force the government to
raise the retirement age again, this time to 75!
- Inflation to be a bit lower than is conventionally expected. The end of
the inventory turnaround and the prospect of more normal wheat and cotton growing
weather should bring prices of commodities down. While interest rates –raised in China
again on Christmas Day – should continue to rise in the fast growing Eastern
economies, they could remain flat in the US, the Eurozone and the UK.
- Another tough year for consumers. The VAT rise, combined with high
commodity prices at the beginning of the year and depressed average earnings and
falling employment mean that disposable income will fall. Whereas last year the fall was
offset by consumers running down savings and by spending less on utility bills (at least
until the cold December), this year there is not a lot of cushion left. So expect consumer
spending to be flat at best and even that would be a result.
- Online retailing had a tremendous year in 2010 and has really become a dominant
driver of consumer spending. Two new technologies which we expect to start to grab
attention in 2011 are cloud computing, which in effect is renting access to your
server, and ‘telepresence’, the use of HD TV to provide teleconferencing that is such
high quality that it seems as if the other people are in the same room as you.
- Banks in the UK to start lending again. UK banks have done a lot to get their
capital bases restored after the problems of 2007/08. We expect them to lend more
competitively in 2011 – either because they can afford to or because the government
gets fed up with their monopolistic attitudes and start to adopt more aggressive policies
to them.
- A year of two halves for the UK housing market. In the first
half of the year, we expect a weak UK housing market and prices could
even edge down, on the back of weak disposable income. But in the
second half of the year, lending could become cheaper as competition to
provide mortgages heats up and this should turn the market round. Prices
may be much the same at the end of the year as at the beginning.
9

10. Regional
Comment Economy Marketplace IT market IT news
UK’s lowest average gross pay (£441 per week) Virgin Money to recruit 300
new staff
800 new jobs to be
created in Middlesbrough
Goldman Sachs invests £43m in NW based company Hull had the country’s highest unemployment (14%)
Nottingham has UK’s lowest employment rate (55%)
House prices are up 5.4% on Q4 2010
Gwent had the UK’s lowest job density (0.49 jobs pp) East Anglian company makes £33m acquisition
Average house price stands at £236k City jobs up 142% on Q4 2010
80% of commuters looking to move closer
to home
North East
- Easington in County Durham had the second lowest employment rate in the UK (57%)
- The North East had the lowest job density (jobs per head) in the UK (0.69 jobs per
person)….the worst district being Chester-Le-Street (0.45)
- The region is the cheapest place to buy a house in the UK – the average price being
£153k, which is up 2.1% on a year ago.
- Up to 800 jobs could be created in the UK’s steel industry after the takeover of a
Middlesbrough steel works by Thailand’s biggest steelmaker. Sahaviriya Steel
Industries (SSI) paid India’s Tata Steel £291m ($469) to take over Teeside Cast
Products.
- NEPIC, the regional cluster for the chemical and process industries in the North East,
has only been in existence for six years but has now contributed more than £1bn of
added value to the regional economy.
North West
- Liverpool had the region’s highest unemployment rate (12%)
- The average house price is £163k, which is up 2% on the previous quarter and 3.6%
on a year ago.
- Investment bank Goldman Sachs has taken a minority stake in a Warrington-based
technology business AppSense after investing $70m (£43m).
- A number of major employers in the North West region have pledged to take on more
apprentices during National Apprentice Week. Wirral Council is the latest organisation
to announce its support for the creation of apprenticeship roles by spending £1m on
doubling the number of apprenticeships provided with local employers.
10

11. Yorkshire & Humberside
- Ryedale in North Yorkshire had 86% employment rate – the joint highest in the UK.
- Eden in Cumbria had the lowest unemployment rate (3.3%)
- Kingston Upon Hull had the UK’s highest unemployment rate…14%
- House prices have risen 4.4% in the past year to reach an average of £166k
- Diagnostics specialist Avacta Group has signed an exclusive commercial agreement
with Pall Corporation to develop and market its Optim analysis device in North America.
As part of the agreement, US-based Pall Corporation will also work with York-based
Avacta to develop and market other advanced technologies and analytical services
aimed at the life sciences market.
East Midlands
- Nottingham had the UK’s lowest employment rate…just 55%
- The average house price is £169k, which is an increase of 4.7% on Q1 2010
- Nottingham is the 10th biggest contributor to the UK
economy, research has found. The city generated
£25,835 per head, 1.2% up on the previous 12 months.
This was £1,491 above the UK average of £21,103.
Derby was placed 12th in the list, generating £22,594 per
head (up 0.5%); Leicester was 21st with £20,438 (up
0.6%)
- A firm of consulting engineers, which has an office in
Hull, has been appointed by leading online grocer Ocado
Group Plc to provide civil and structural engineering
services for a new £210m distribution centre in Dordon, North Warwickshire.
Waldeck, which also has offices in Peterborough, Sleaford, Lincoln, Nottingham and
Northampton, is responsible for the structural design of the Customer Fulfilment Centre
(CFC), Ocado's second, and the infrastructure on the 35-acre site on the Birch Coppice
Business Park.
West Midlands
- Sandwell had the joint 3rd highest unemployment rate (13%)
- House prices have increased by 5.4% on the previous quarter, and up 4.4% on a year
ago to reach an average of £183k
- Plans to transform part of Coventry city centre with an exciting new multi-million-pound
superstore, retail and leisure development are being unveiled. The site comprises
approximately 3.5 acres with the proposed scheme producing a completed development
value of around £50 million.
Midlands-based Barberry Developments has completed the purchase of the 200,000 sq
ft former Royal Mail Sorting Centre and adjoining properties, including 50 Bishop Street,
and is planning a large and comprehensive retail-led scheme on the site. The
development will be known as Bishop Gate.
- Browne Jacobson has advised Staffordshire County Council on one of the country's
first Public Sector Networks (PSN).
11

12. The network, which is being delivered in partnership with KCOM, will be accessed by
around 200 council sites and 400 schools, including all Borough and District councils in
Staffordshire. South Staffordshire Health is already committed in principle and
discussions are taking place with wider partners such as Staffordshire Police and
Staffordshire Fire and Rescue service.
The initial £23m contract, which is for five years with the option to extend for a further
five years, will involve sharing services including telephones, a County-wide computer
network, security services, contact centre technology and mobile phones.
East
- The area with the highest rate of male employment was East Cambridgeshire (91%)
- House prices in the region have risen by a whopping 9.4% over the past year to
become the country’s fourth-highest region with an average of £214k.
- Alpha Biologics at Babraham has been acquired along with its Malaysian parent by
California company Viropro in an all-share deal valued at $21 million - just under £13m.
- Global engineering and project management firm, AMEC, has made a £33m
acquisition north of the Border. The East of England company has acquired qedi, a
market-leading oil & gas completions and commissioning services company based in
Aberdeen.
Multi million pound funding from the Government has lit the touchpaper to a world-
leading data hub in Cambridge that could revolutionise bioscience research and lead to
major healthcare advances. A team of highly-skilled staff would be responsible for
cataloguing and filing the data and providing user support, and it is predicted that the
project would create around 100 hi tech jobs.
South East
- Only London saw a greater increase in house prices over the past year (12.1%), which
now stands at an average of £291k.
- Tourism is worth more than £400 million to Canterbury’s
economy. New research has revealed the industry has
grown by 13% in three years around the city. The
Cambridge Model survey of tourism, commissioned by
Visit Kent and based on statistics gathered in 2009, has
also shown a marked rise in Swale.
Across Kent, the economy has grown by 10% between
2006 and 2009, with an eight% increase in the number of
visitors and a 7% increase in the number of jobs. An
estimated 63,000 jobs help generate £3.2 billion to Kent’s
economy.
- A recent survey of Brighton & Hove businesses has indicated a bright-looking future for
jobs in the city by the sea. According to a December 2010 to January 2011 survey by
BrightonandHoveJobs.com, more than a third (36%) of employers plan to create new
jobs and take on new staff over the next 12 months, while 17% said they expected
higher than average growth which could lead to new jobs. A mere 4.3% said they were
looking to reduce staffing.
12

13. A parallel survey of employees also showed an optimistic outlook, with a swing towards
people improving their work-life balance by finding local jobs instead of commuting to
London, despite the capital's higher pay levels. Indeed, more than 80% of commuter
respondents were seeking a shorter and easier journey. This trend may be influenced by
the recent rise in train fares, although 25% of respondents believed the Brighton & Hove
work environment is of a better quality. Among the respondents who did not yet have a
job in Brighton & Hove, 75% were keen to find one in the next 12 months.
London
- London is the region with the highest jobs density at 0.90 jobs per resident aged from
16 to 64 compared to North East which has a jobs density of 0.69. The four local areas
with the highest jobs densities are all in London, being the City of London (36.58),
Westminster (3.34), Camden (1.76) and Islington (1.42).
- In contrast, Lewisham had a job density of just 0.41
- Twenty two areas had a median gross weekly pay over £600, twelve of which were
over £650. Of those over £650, nine were in London the highest of which were – the City
of London (£928.20), Tower Hamlets (£816.80) and Westminster (£698.80).
- The average house price in London was £430,680 in February (up 4.2% on January),
and up 12% on Q1 2010.
- The number of new City jobs rose by 142% in
January on December, according to the latest
Morgan McKinley London Employment Monitor.
The average IT salary in The Monitor reveals that compared to January
2010, job numbers rose by 28% this January.
London is £52k; and the The number of new candidates also rose by
average daily rate is £475 76% month-on-month in January 2011.
- The Foreign Office is planning to axe around
450 jobs from embassies and consulates
around the world, including posts helping UK
citizens and supporting diplomats, union leaders have said.
Internal briefings to staff said the cuts were part of measures to save up to £30 million a
year because of reductions in Government spending, said the Public and Commercial
Services union.
Officials said the move was "short sighted" particularly at a time when staff have played
a key role in providing assistance to UK citizens in countries such as Egypt, Tunisia and
Libya.
South West
- The South West had the country’s second highest job density (0.82 jobs per head)
- The three areas with the lowest median gross weekly pay were Caradon in Cornwall
(£349.60), West Devon (£351.40) and Torridge in Devon (£352.40).
- The region now stands as the third costliest place to buy a house, with an average of
£236k – an increase of 8.6% on Q1 2010.
- Progress on the building of a new ferry terminal in Penzance may have stalled for now
but construction work of a different kind has been moving forward apace at the Penwith
College site. It's part of an upgrade that has seen £32 million invested in totally
reconfiguring the site. Of this, £24 million is being spent on higher education facilities
and £8 million on the college's further education provision.
13

14. Wales
- Gwent had the UK’s second highest unemployment rate at 14%. It also has the lowest
job density in Wales (0.49).
- The average house price in Wales stands at £160k (the 2nd lowest in the UK), despite
an increase of 2.6% over the past year.
- A Swansea company is to create more than 300 new jobs in a rapid expansion drive.
Nationwide Energy Services helps people to claim government grants for subsidised loft
and cavity wall insulation, and is now expanding its services.
The contact centre company employs 280 staff at its head- quarters at Swansea
Enterprise Park, but is looking to expand that to 640 during 2011. It has brought in
telecoms provider Virgin Media Business to provide the infrastructure needed to
underpin its rapid expansion.
Scotland
- Shetland Islands had 86% employment rate – the joint highest in the UK
- Aberdeen had the 3rd lowest unemployment rate (3.4%)
- The average house price in Scotland is £163k, which is an increase of 6.6% on Q4
2010……the third biggest increase in the UK.
Group plans to recruit 300 people for its Scottish base
Virgin Money is to begin recruiting for 300 new staff in Scotland
after agreeing rental terms for a new Edinburgh headquarters.
The group said its lease of 28 St Andrew Square is the largest
city centre commercial property deal in Edinburgh in two years.
The financial services arm of Sir Richard Branson's Virgin
Group already has an Edinburgh office having agreed in 2009 to
take the entire top floor of the Venue Studios at 15-21 Calton
Road. Virgin Money currently employs 85 people at that office.
The group confirmed last September it planned to base its new
operations centre in Edinburgh which it said would create 200
jobs initially. However the group said it now plans to hire
Timeline around 300 staff to beef up administration teams as it prepares
to launch a full-scale banking proposition in late 2011 or 2012.
1995 – Virgin Direct opens, with
£42m invested in first month
1997 - £1bn funds invested by
Easyjet to create 60 jobs in Scotland
200,000 customers
The airline is launching four new routes from Scotland, including
1999 – company wins service a new direct service from Aberdeen to London Gatwick.
excellence award
2002 – Virgin credit card launched Three additional services - to Athens in Greece, Tenerife and
Grenoble, France - are starting at Edinburgh Airport in
2007 – named Britain’s fastest September. The move is expected to increase passenger
growing private company in the capacity to and from Scotland to three million a year.
Sunday Times Profit Track 100
14

15. Atos Origin wins £18.5m FirstGroup contract
Atos Origin has won a five-year contract with FirstGroup to improve IT infrastructure in
North America. The $30 million (£18.5m) contract involves Atos consolidating First's
data centres which have grown through recent acquisitions.
Atos Origin in Scotland also provides a number of services to First including rail
operating systems, real-time management and deployment of vehicles and staff as well
as ticketing solutions and customer information systems.
Scottish government pledges £10million to provide incentives to SMEs to hire new
staff
The Scottish government has launched a new £10 million incentive fund for small
businesses it hopes will help up to 5,000 people back into work.
Finance minister John Swinney said the money would be used to encourage small and
medium-sized companies to take staff on, assist in hiring new employees and encourage
Scotland's exporting companies.
Under the plans outlined, £5 million will be spent on an Employer Recruitment Incentive
run by Skills Development Scotland.
Employers will be offered £1,000 for each recruit to encourage job creation to over-18's
unemployed for six months or more or already participating in Skills Development
Scotland's Training for Work programme.
A further £2.5 million has been pledged for Small Business Employment Support to
assist companies with less than 50 employees with £1,000 subsidy to meet the cost of
recruitment and payroll. And another £2.5 million will go towards a new Export Support
initiative to help around 100 companies to exploit opportunities in new markets.
John Rendall confident of HSBC expanding Scots market share
HSBC's Scotland chief executive insisted the bank
is continuing to make inroads into the Scottish
market despite customers remaining loyal to their
lender through the financial crisis. “ We are winning the kind
John Rendall said the banking crisis did not appear
of customers we set out to
to have made businesses much more likely to
change banks, with only 5% a year switching.
win, and keeping them ”
"We are winning the kind of customers we set out
to win, and keeping them," he said. "But we have
learned that the end to end process can be longer than we might have thought."
Orkney-born Rendall was appointed as HSBC's Scotland boss in June 2009, tasked with
taking advantage of the turmoil among competitors to grow the bank's relatively small
presence north of the Border.
15

16. Northern Ireland
- The highest job density per person outside of
London was Belfast (1.33 jobs pp)
- Conversely, Carrickfergus had the lowest job
density (0.38)
- Northern Ireland had the lowest average gross pay
in the UK (£441/week)
- House prices in Northern Ireland fell by 1.6% on Q4
2010, but plummeted by nearly 21% over the past
year – the only place in the UK to do so. The
average price now stands at £161k.
- County Antrim bus builders Wrightbus have Ulster Bank
announced a major new order from the UK for 334
new buses. The contract with bus operator Arriva is Across the Republic of Ireland and Northern
valued at around £55m and consists of 204 double- Ireland, Ulster Bank employs over 6,000
people.
deck and 130 single-deck buses.
They meet the needs of around 1.9 million
Ulster Bank lose £761m in 2010 personal and business customers through 295
branches and business banking offices.
Ulster Bank has reported operating losses of £761m
Their business is formed of two distinct
for 2010 in its annual results bulletin. divisions:
- Ulster Bank Retail Markets
The Royal Bank of Scotland Group (RBSG) company - Ulster Bank Corporate Markets
said "deteriorating" economic conditions across
Ireland had impacted their performance. Timeline
1836 – Ulster Bank is founded
Profits before impairment had increased to £400m;
however impairment losses had risen by £512m to 1917 – Ulster Bank becomes a wholly owned
£1,161m, resulting in the overall £761m loss. subsidiary of what is now known as NatWest
2000 – The Royal Bank of Scotland Group
"We continue to take the right steps to manage the (RBS) takes over NatWest. Ulster Bank
recovery of our business," said Ulster Bank CEO becomes a wholly owned subsidiary of RBS
Cormac McCarthy.
2004 – Ulster Bank Group acquires First
"Against a backdrop of very challenging market Active, a leading mortgage provider.
conditions, we remain committed to raising deposits,
pricing appropriately in the market and managing our
cost base."
Mr McCarthy added that customer deposit balances
have increased by 8% over the year. He said the
RBS Group remains "committed" to its business on
the island of Ireland.
"In 2010, we announced a programme of initiatives
that highlights our commitment to the island of
Ireland and to our 1.9 million customers," he
continued.
16

17. Figures are in thousands and are seasonally adjusted
Table 1 - Labour Market Statistics
Economically inactive Unemployment Employment Economically active
Change v Change v Change v Change v Change v Change v Change v Change v
Q4 2010 Q4 2010 Q4 2010 Q4 2010
Q3 2010 Q4 2009 Q3 2010 Q4 2009 Q3 2010 Q4 2009 Q3 2010 Q4 2009
North East 452 33 16 129 13 12 1,129 -47 -19 1,258 -34 -7
North West 1103 24 -8 258 -19 -31 3,162 -5 59 3,420 -25 28
Yorkshire 841 0 21 244 8 3 2,386 -2 -7 2,630 6 -4
East Midlands 666 5 31 185 3 19 2,117 12 -17 2,302 15 2
West Midlands 847 24 21 261 28 11 2,410 -43 -23 2,671 -15 -11
East 763 1 -5 198 -1 5 2,810 -1 36 3,009 -2 41
London 1334 12 -14 373 -1 -1 3,788 7 76 4,160 6 75
South East 1079 15 12 273 -5 -1 4,181 -4 34 4,454 -9 32
South West 688 -4 -15 165 17 -6 2,542 -12 45 2,707 5 40
England 7773 111 58 2085 42 12 24,526 -96 184 26,611 -54 196
Wales 492 -13 -10 123 5 -1 1,335 10 30 1,458 15 30
Scotland 769 -1 6 216 -13 10 2,488 23 -2 2,704 10 8
Great Britain 9035 97 55 2424 34 21 28,348 -63 213 30,772 -29 234
Northern Ireland 327 -4 -19 68 9 18 773 -5 6 841 5 24
United Kingdom 9361 93 36 2492 44 40 29,121 -68 218 31,613 -24 258
17

18. Marketplace
Comment Economy Regional IT market IT news
- The employment rate was 70.4% and there were 29.09 million employed people.
- The unemployment rate was 7.9% and there were 2.50 million unemployed people.
- The inactivity rate was 23.4% and there were 9.37 million inactive people aged from 16 to 64.
- Total pay (including bonuses) rose by 2.1% on a year earlier.
- Regular pay (excluding bonuses) rose by 2.3% on a year earlier.
Number of people (000's) Rates (%)
UK labour force survey Change v Change v
Q4 2010 Q4 2010
indicators Q3 2010 Q3 2010
Number in employment & rate 29,089 -69 70.4 -0.3
Unemployment (aged 16+) 2,498 49 7.9 0.2
Inactivity (working age) 9,369 89 23.4 0.2
Average weekly earnings Q4 2010 average weekly pay Annual growth since Q4 2009
Total pay (inc. bonuses) 455 2.1
Regular pay (exc. Bonuses) 430 2.3
UK unemployment total rises again
UK unemployment rose by 44,000 to almost 2.5 million in the three months to the end of
December, the Office for National Statistics (ONS) has said.
Youth unemployment rose to a fresh record high, with more than one in five 16 to 24-
year-olds out of work after a rise of 66,000 to 965,000.
The unemployment rate is now 7.9%, with youth unemployment running at 20.5%. The
number of people claiming Jobseeker's Allowance also increased, by 2,400 last month to
1.46 million.
Prime Minister David Cameron said unemployment, particularly among the young, was
"a matter of great regret". But he stressed that it had been a problem for some time.
The number of people in part-time work because they could not find a full-time job rose
by 44,000 to 1.19 million, another high since records began in 1992.
18

19. Long-term unemployment also
Table 2
deteriorated, with 17,000 more people
Changes in unemployment levels out of work for more than a year, to a
Who Q4 2008 Q4 2010 Change total of 833,000.
(%)
All 2,005,000 2,492,000 24.3 Other data from the ONS showed that
Men 1,205,000 1,464,000 21.5 average earnings rose by 1.8% in the
Women 800,000 1,028,000 28.5 year to December last year, slightly
Under 24 816,000 965,000 18.3 down on the 2.1% growth in the year to
25-49 879,000 1,143,000 30 November.
50-64 292,000 362,000 24
Over 65 17,000 21,000 23.5 The figures also showed that
For 1 year+ 454,000 833,000 83.5 unemployment fell in Scotland by
For 2 years+ 339,000 210,000 61.4 13,000, but rose in England, Wales
Source: ONS and Northern Ireland.
There were 40,000 more job vacancies in the three months to January than in the
previous three months. This is often seen as an indicator of the health of the economy
and whether companies are creating jobs.
UK unemployment 1992 - 2010
Source: BBC Business
The number of people aged 16 and over who are employed fell by 69,000 on the quarter
to reach 29.09 million, the Office for National Statistics (ONS) said.
But the number of people unemployed in the UK increased by 49,000 for the three
months to November 2010 to reach 2.50 million. The number of people aged 16 and
over who are employed fell by 69,000 on the quarter to reach 29.09 million.
19

20. Public sector out-earns the private sector again
Average total pay (including bonuses) in the private sector was £449 per week in
November 2010. In the three months to November 2010 total pay in the private sector
rose by 1.9% on a year earlier.
The equivalent figures for the public sector were £469 per week, and an increase of
2.4% respectively.
Average total pay (including bonuses) was £455 per week in November 2010. In the
three months to November 2010 total pay rose by 2.1% on a year earlier, unchanged
from the three months to October 2010.
Vacancies up nearly 4% on Q3 Redundancies down 19%
There were 480,000 job vacancies in the In the three months to November 2010,
three months to December 2010, up 157,000 people had become redundant
18,000 from the three months to in the three months before the Labour
September 2010 and up 14,000 from a Force Survey interviews, up 14,000 from
year earlier. The estimates include the three months to August 2010 but
vacancies for temporary jobs in down 25,000 (-19%) from a year earlier.
connection with the 2011 Census, which
have been advertised since October 2010. The redundancy rate was 6.3 per 1,000
employees, up 0.5 from the previous
There were 1.8 vacancies per 100 quarter but down 1.1 from a year earlier.
employee jobs in the three months to
December 2010, up 0.1 on the previous
quarter and on the year.
20

21. “ There are still five
candidates for every
single vacancy ”
Liam Byrne, Shadow Work & Pensions
Secretary
Permanent placements rise at a faster pace
Numbers of permanent placements and temporary/contract billings rose at faster rates in
January, according to the latest Report on Jobs from the Recruitment & Employment
Confederation (REC).
The report shows latest increases were the most marked for six and seven months
respectively, while recruiters report increased staff appointments reflect a further rise in
vacancy levels at employers with overall demand for staff growing at its fastest pace
since June 2010.
Meanwhile, the availability of staff to fill permanent jobs remained broadly stable in
January, following a quarter of growth, while temporary/contract staff availability
continued to improve at a marked pace.
Training professionals in demand…
Training professionals are increasingly in demand, according to Lynne Hardman,
managing director, professional services at Badenoch & Clark.
In the latest Badenoch & Clark talent spotlight, Hardman says: “Learning & Development
professionals have been increasingly in demand since the beginning of 2011.
Opportunities cross both public and private sectors, but the emphasis is tending to be at
the specialist and managerial level. Organisations are feeling more confident about the
future and are now willing to make these longer-term investments.”
…but its bad news for Interim Managers
The interim management market experienced an 8% drop in demand over the past six
months, according to a snapshot survey of 12,500 interim managers.
Despite a fall in activity levels, the average daily pay for interim managers rose from
£592 in June to £613 in December. Interim managers working part-time also received a
6% boost in pay, with rates rising from £568 in June to £601 in December.
The market decline reverses the 11% upturn in activity recorded in June 2010, and two
previous periods of decline recorded from 2008, when the recession was gathering
pace.
21

22. Adecco warns of ‘lack of
awareness’ about AWR
The Head of Regulation & Employment at Adecco Group
has warned that many employers show “an alarming
lack of awareness about the Agency Workers
Regulations (AWR)”.
Andy Smith says: “Publication of guidance by the
government has been delayed by its deliberations over a
Andy Smith, Adecco Group
possible review and is not expected until this spring. But
many organisations need to understand the potential
impact of the regulations now because they are AWR – ‘need to know’ points
developing their HR and budget plans for 2011.”
- They will come into force on 1st October
Mike Emmott, CIPD public policy adviser, says: “It is 2011.
important that employers should make their own
assessment of how the regulations will affect them, - The key aspect of the Regulations is the
based on an understanding of what they say. requirement that qualifying agency workers
receive relevant basic working and
employment conditions that are no less
“Agency working makes a significant contribution to the favourable than they would have been if hired
UK’s flexible labour market and it would be damaging if direct to do the same job.
employers were to make decisions about their
recruitment strategies based on misunderstandings - There is a qualifying period of 12 weeks.
around the scale of the impact the regulations are likely
to have on their business, or stories about ‘gold-plating’.” - There are going to be anti-avoidance
measures introduced.
Smith’s and Emmott’s comments come following the
publishing of a new guide by the CIPD, in partnership - Employment tribunals will have discretion to
with Adecco, which aims to help employers prepare for make an award of no less than 2 weeks' pay
for equal treatment claims and pay between
the impact of the AWR. assignments.
The regulations, which come into effect on 1 October - The Regulations exclude the genuinely self-
2011, implement an EU directive requiring the basic employed, those employed on 'managed
employment terms and conditions of agency workers service contracts'.
after a qualifying period of 12 weeks to be no less
favourable than those that would apply if they had been - The right to equal treatment includes basic
recruited directly. pay, some bonuses or other incentive
payments and enhancements to holiday
rights.
- The Regulation also contain some 'day one'
entitlements
- The Regulations will also introduce improved
protection for new and expectant mothers
22

23. IT market
Comment Economy Regional Marketplace IT news
IT contractors look to financial services for jobs as
public sector cuts bite
Confidence amongst IT contractors over their job prospects in financial services has
surged over the last 12 months as banks continue to ramp up IT investment post-credit
crunch, reveals new research by giant group plc, the contractor services provider.
36.7% of IT contractors think the financial services sector will create the most IT jobs
over the next 12 months, up from 22% this time last year.
At the same time, confidence in the public sector to create IT jobs has slumped to an all-
time low. Just 4.5% of IT contractors expect the public sector to create the most IT jobs
in 2011, down from 24.7% in Q4 2009.
Long term joblessness amongst IT contractors (without
work for 90 days or more) dropped significantly this year.
According to giant group, just 6.5% of IT contractors
have been out of work for 90 days or more, compared to
over 10% last year.
Matthew Brown, Managing Director of giant, comments:
“As the economic recovery gathers pace we should see
the number of contractors out of work for extended
periods fall quite dramatically. Just over 5% of IT
contractors were classed as long term jobless before the
collapse of Lehman Brothers, so we are not back to pre-credit crunch levels just yet, but
getting closer.”
Confidence in the public sector has collapsed since the Comprehensive Spending
Review. Just 4.5% of IT contractors expect the most job opportunities to come from the
public sector, compared to nearly a quarter (24.7%) last year.
Nearly two thirds of techies are not loyal to their work
According to the latest survey from The IT Job Board nearly two thirds (59%) of IT pros
are not loyal to their work. And when asked, more than half (52%) said they didn’t
believe that IT workers tended to be loyal in their employment.
The banking and finance sectors were highlighted as being those with the biggest
movement of IT workers – standing at 34%. Post recession, a staggering 85% said they
plan to ‘jump ship’. And 80% indicated that they will be looking for a new job in 2011.
More than half (53%) of those who plan to leave their employment advised it was
because they don’t feel valued, and 48% said it was due to poor salary. 58% of those
surveyed advised their loyalty would be improved with better corporate communication.
23

24. Scottish government announces digital Government Opens Bidding For
strategy £50m Broadband Fund
The Scottish government has outlined plans to improve Local authorities can now bid for a share of the
£50 million released by government for broadband
uptake of broadband across the country, as well as foster investment
increased participation in digital activities, in a report
entitled Scotland's Digital Future. The British government has released its first
installment of the £530 million it pledged for the
"There is a clear role for the public sector in realising rollout of superfast broadband. Local public
Scotland's digital future," said Scottish culture minister authorities are being invited to bid for a share of
the £50 million fund, which is intended to extend
Fiona Hyslop. Internet access to areas of the country that are not
commercially attractive to Internet service
The report coincides with the release of £1.5m by the providers.
Scottish government to fund activities throughout 2011
designed to increase the uptake and use of fast More than half of the this investment – £300
broadband, including moves to get more businesses million – will come from the TV licence fee, with
the remaining £230 million to be provided from the
online. government purse. Around 2 million households
will benefit from this investment, according to the
The report outlines plans to get Scotland fully connected review, including some of the most remote areas
to next-generation broadband by 2020, with an aim to at of the UK.
least match or overtake the UK uptake average.
To secure the best possible share of the coalition's
£830m super-fast broadband war chest, Scotland will be
working with local authorities and other stakeholders to
develop a strategic infrastructure plan for Scotland.
Further to this, plans to develop an online portal for
Scottish public information and services are under way,
and a beta site is set for launch by the summer.
Despite these moves, CIVIC, an independent creative
digital agency, believes Scotland's digital plans are still
missing some key elements.
"We would expect to see a move towards simplification,
automation and a reduction in duplication [within the
strategy] but this principle is nowhere to be found," said
CIVIC managing director, Greig Tosh. Culture secretary Jeremy Hunt has already
pledged to make the UK the best place for
"We would like to see more cost transparency on public superfast broadband in Europe by 2015, although
sector ICT, and we believe this would open the way for this will rely heavily on the private sector. BT has
more responsive, cost-effective solutions from Scotland's promised to match any of that money which the
smaller IT firms." government contributes.
Tosh also criticised the Scottish government for Hunt also said that the government’s investment
would create 600,000 new jobs, based on an
overlooking open source. "It's an achievement to write estimate by investment body NESTA. However,
50 pages of a national digital strategy without even academics at the London School of Economics
mentioning open source," he said. put the figure at 280,000, and the Federation of
Small Businesses believe fast broadband will add
"Open source – the ability to view and adapt code which £18 million to Britain’s gross domestic product.
you have the right to use because it is either free or
available through a licence – should surely be a Meanwhile, BT is in the process of investing £2.5
billion in rolling out fibre to around two thirds of UK
requirement for any government seeking to be in charge
homes by 2015. BT believes that the new
of its own destiny," he added. commitments will make the UK one of the best
connected countries in the world for so-called next
generation broadband.
24

25. Demand for retail IT staff leaps 45%
Demand for IT staff in the retail sector grew 45% in the fourth quarter of 2010 compared
to the same period in 2009. According to the latest survey by Salary Services Limited
(SSL) and JobAdsWatch.co.uk, the number of permanent staff recruited by retail
organisations grew 5% in the fourth quarter of 2010 compared to the previous quarter,
with 45% more vacancies being advertised than in the same period in 2009. However,
vacancies are still down 48% on pre-recession levels of recruitment for the sector.
IT Skills in retail
The table below shows the programming vacancies retailers advertised for during the
fourth quarter of 2010.
"This surprising figure is due to a number of factors, which include better development
tools becoming available that lead to improved productivity, more reliable software and
hardware needing considerably less support and operations staff to run computer
centres," said George Molyneaux, research director at SSL.
Salaries for permanent staff in the retail sector increased by 2% since 2009, whilst
salaries for Project Managers were down by 3%. Demand for Developers surged 24%
in quarter four; SQL being the software skill most in demand, followed by C and Java.
Table 3 SQL Vacancies in retail
Skill Vacancies
SQL 488 700
C 291 600
JAVA 227
500
.NET 210
Q4 2007
C# 217 400
Q4 2009
HTML 207 Q3 2010
300
ASP 175 Q4 2010
AGILE 194 200
JAVASCRIPT 181
100
SQL SERVER 162
0
Q4 2007 Q4 2009 Q3 2010 Q4 2010
UK Internet Economy Worth £100 Billion a Year
A report by The Boston Consulting Group (BCG) has identified the value of the Internet
economy in the UK. The report reveals that the UK Internet economy contributed £100
billion in 2009, representing 7.2% of U.K. GDP — more than construction, transport, or
utilities. The report finds that this share is likely to grow by about 10% annually, reaching
10% of GDP by 2015.
Around 60% of this total is driven by “consumption” - the amount that Internet users
spend on online shopping and on the cost of their connections and devices to access the
Internet. The remainder comes from investment in the United Kingdom’s Internet
infrastructure, government IT spending, and net exports.
25

26. IT jobs: Hiring back to pre-recession levels
IT recruitment has bounced back to pre-recession
levels, according to a new survey.
It also found that general hiring activity levels
during 2010 were comparable with those in 2007
before the recession hit many tech jobs.
Application developers with expertise in Apple's
iPhone and RIM's BlackBerry were found to be
particularly in demand, with infrastructure
specialists and professionals with strong enterprise
backgrounds highlighted by the report as being the
most consistently in-demand IT workers.
Linux and PHP developers were also sought after,
according to the report, with businesses also
focused on hiring IT staff with skills in open-source
technology.
'Very few' IT employers hiring to fill skills gaps
Training day, not hiring day, is the focus of IT departments planning to fill internal skills
gaps in the next few months, depriving IT temps of a normally reliable way to cash in.
Despite concerns about their value, an internal IT training scheme is the priority for 70%
of IT leaders tasked with boosting the technical abilities of their on-site IT team.
Speaking to pollsters for computer jobs agency Modis, half the IT leaders said their
techies weren’t adept on systems already in place to effectively support the outfit’s wider
objectives. And upgrading the organisation’s hardware won’t help, a third of the leaders
suggested, as the existing IT team wouldn’t “have the right expertise to cope with new
systems at all.”
But rather than hiring, IT leaders say they will plug the skills gap by training existing staff
already on the payroll, implying IT departments lack the resources to invest in new
talent. Under greater pressure to make technology deliver commercial objectives, Modis
added, IT leaders “don't have the tools and in some cases the teams to do all aspects of
the job.”
Managing Director, Jim Albert sympathised, saying commercial demands on IT
personnel were often “highly complex”, requiring specific knowledge of statistics and
data management systems.
Still, just 15% of the IT leaders are considering outsourcing their IT needs as a result,
and only a “very few” said they would respond to the knowledge gap by hiring new IT
workers.
One obvious exception is Google, which said 2011 will be its “biggest hiring year” so far,
indicating that the search giant will take on at least 6,200 workers over the next 10
months.
26

27. How can we find the new recruits that IT needs?
First the bad news: the number of Computing A-levels taken in the UK has declined by
60% since 2003, and IT graduates have declined by 44% since 2001. With increased
tuition fees this is unlikely to change - e-Skills anticipates just 18,200 entrants from
education. This leaves 91,800 to recruit through other avenues. The good news is that
talented people in all sectors are looking for work - the challenge is to attract them into IT.
Identifying the skills gap
More than half a million new IT
Many don't consider IT as a career path because they
assume it's all about programming and requires a
professionals are needed in the
computing degree. However, recent CompTIA research UK over the next 5 years
found the skills most in demand are project management
(listed as a required skill by 80% of respondents);
database administration/design (77%); business intelligence (75%); PC/technical
support (71%); and cloud/SaaS (70%). Close behind were network administration (66%),
virtualisation (65%) and security (63%).
Connecting people looking for jobs with jobs looking for people
If UK plc is to reap the economic benefits of IT, we need to ensure good training and
qualifications are available to attract new blood and develop existing professionals.
There is encouraging news. The government's Blueprint for Technology aims for the UK
to become the most attractive place in the world to start and invest in IT companies. It
plans to fund 75,000 additional adult apprenticeships by 2014/15.
This is a great initiative, but alone is not enough. It is imperative that IT companies - who
have the most to lose from lack of skills - also act to bring people in. IT companies need
to attract non-IT professionals and provide them with training and hands-on experience.
Certifications are an important part of the process, particularly for recent entries to the
profession, as they validate an employee's skills and boost their confidence.
Don't forget about our existing talent
We must not forget about the talent we already have. The report showed one in 10 firms
reported gaps in IT staff skills, which is cause for concern. We are relied upon to keep
abreast of the latest technical innovations and security threats in a rapidly changing
world - we can't afford not to keep skills up to date.
Training and certifying existing staff equips them with the expertise and motivation to
meet an organisation's changing needs and supports career development. In an industry
with more jobs than qualified people, employees can afford to be picky. Companies need
to show them they are valued. Training and certification is one of the best ways to boost
staff retention and recruit top talent.
Not being left behind
It is critical, both for our sector and the UK economy, that we increase the numbers of IT
professionals. This means promoting the value of a career in IT, and training and
certifying IT staff. If we don't invest in developing our workforce we will be left behind,
while other countries and companies reap the rewards of this lucrative sector.
27

28. IT news
Comment Economy Regional Marketplace IT market
Barclays Bank boosts IT staff and project spending
According to the results, overall staff numbers have
increased from 66,000 in 2009 to 67,000 last year
across the firm's global retail banking operations. This
is largely due to the insourcing of operations and the
company's international development of IT
infrastructure, as well as the development of Barclays
Shared Services unit in India and the acquisition of
Standard Life Bank last year.
Overall administration and general expenses in the
banking arm increased, up 18% from 2009's figure of
£5.56bn to £6.585bn last year.
According to Barclays, the boost is mainly related to
investment in technology and infrastructure, as well as greater regulatory-related costs
and spending related to the buy-out of Standard Life Bank.
Cloud computing to boom in 2011
Cloud computing will be one of the fastest growing IT markets in 2011, according to
analysts. A report by research company IDC predicts that while global IT spend will
increase by 6% in 2011, spending on public cloud computing services will grow five
times faster.
Cisco axes corporate cloud email
Cisco has decided to discontinue its Cisco Mail software as a service (Saas) product,
saying customers are now interested in social collaboration and stand-alone email.
Cisco Mail, which was originally launched as WebEx Mail, will be phased out to allow
customers to move to alternatives.
IT chiefs braced for staff jumping ship in 2011
IT directors have identified staff retention as the top challenge facing their business in
2011. The lack of skilled tech workers on the jobs market means 85% of IT directors are
concerned about staff retention this year.
Business demand for IT skills escalated throughout 2010 as tech projects mothballed
during the downturn were restarted. The subsequent increase in IT workload resulted in
41% of IT chiefs increasing their department's headcount in 2010, compared with 32% in
2009. Staff turnover is on the increase rising to 11% in 2010 from 9% in 2009.
28

29. Gartner predicts boom in social CRM
The customer relations management (CRM) market is set for a shake-up in the next
three years as global spending on social CRM software passes the $1bn (£620m) mark,
according to the latest research from Gartner.
The analyst firm's predictions for CRM in 2011 and beyond state that social CRM will
encompass approximately 8% of all CRM spending in 2012, up from roughly 4% in 2010.
Staff face axe as London councils reveal what shared services will
mean for IT
Three London councils - Westminster, Kensington & Chelsea and Hammersmith &
Fulham - are set to save £400,000 a year by rationalising ICT jobs as part of their
ongoing shared services strategy. The councils say this equates to a reduction of
between 10 and 12 ICT posts.
In a document entitled "Tri-borough Proposals Report: Bold ideas for challenging times",
the councils outline their plans to make substantial savings over the next five years by,
among other measures, cutting staff, adopting unified communications and closing up to
four datacentres.
"There is certainly scope for the consolidation of staff in
IT, by merging similar functions and reducing duplication
in some strategic roles. Not all of these are tied up in Since 2001 there has been a
outsourced contracts either," says the document. 45% reduction in applicants to
computing degree courses
It points out, for example, that separate teams are
providing IT desktop, application and network support to
primary schools.
KANA Software creates 109 new IT jobs in Belfast
KANA Software has announced plans to create 109 new jobs in Belfast, following its
acquisition of local firm Lagan Technologies last November.
The US-based service management software company, which names companies like
Adidas, Nokia and eBay among its customers, is investing £7.8 million in the job
creation. This is also being supported by £981,000 in funding from regional economic
development agency Invest Northern Ireland.
KANA will be recruiting the new employees over the next three years. According to its
website, KANA is looking for software engineers, project managers and technical
consultants. The company currently employs 321 staff across the US, UK, Australia and
Japan.
29

30. Shell signs €300m outsourcing deal
Oil giant Shell has signed a €300m outsourcing deal to support its
fuel payment-card services.
Under the 10-year deal, UK outsourcing firm Logica and payment
specialist FleetCor Technologies will provide and run the
technology platform that underpins Shell's portfolio of fuel-card
services in 35 countries in Europe and Asia. The first pilot of the
new platform is due to be completed by April 2012, with the full
rollout concluded by the end of 2013.
Fidelity Investments creates 100 tech jobs in Ireland
Financial services firm Fidelity Investments has announced plans to create 100 software
jobs at its offices in Galway and Dublin. The jobs will range from entry-level to
management-level, and will be in the areas of software development, such as Java and
.NET, performance and test engineering, database development and management,
systems analysis and QA.
Bet365: We need talented IT people 21million Britons use IT in their
Bet365 is looking for new IT talent to help it develop
everyday jobs
systems that will give the online gambling company a
competitive edge. The company wants to recruit
people who can help it develop new systems that “aren’t constrained in the way existing
systems are”, according to Martin Davies, CTO of bet365.
“We are always on the lookout for more talented people,” Davies said. “For example we
want people who understand low latency systems and how they work.” He added that
Java skills are also required for the company’s primary core, and Microsoft SQL server,
.Net and C# skills are needed for bet365’s main transactional system.
Bet365, which went live in 2001, currently employs more than 1,400 employees in
Stoke-on-Trent. More than 300 of the staff are in IT, which includes around 160
developers and the rest employed in supporting functions, infrastructure, database
administration and so on.
Thousands lose Vodafone service
Vodafone's mobile network has been disrupted following a break-in at its exchange
centre in Basingstoke. The company said that several hundred thousand customers had
lost voice, text and internet access.
Burglars hit the facility stealing computer equipment and network hardware. Most of the
users affected were in the M4 corridor area, to the west of London.
30

31. Microsoft to set up 1,000 apprenticeships in
London
Microsoft has plans to create 1,000 apprenticeships in London
over the next three years, as part of a drive to boost training
positions in the capital.
London mayor Boris Johnson announced the software maker's
pledge, during an event that kicked off the London
Apprenticeships Campaign. The drive aims to provide 20,000
opportunities for young people looking for work in the capital.
The Microsoft apprenticeships form part of the company's Britain
Works programme, which launched in 2009 and aims to get "500,000 people back into
work by 2012", Stephen Uden, the software maker's head of skills and economic affairs,
said at the event.
Information security professionals must keep skills up to date
There is a clear gap in skills needed to protect organisations, a study has revealed.
The information security community admits it needs better training in a variety of
technology areas, according to the 2011 (ISC)2 Global Information Security Workforce
Study (GISWS) conducted by analyst Frost & Sullivan.
The profession as a whole appears to be resistant to adapting to new trends in
technology such as social media and cloud computing, Frost & Sullivan said in the
GISWS survey of over 10,000 security professionals, including 25% of non-(ISC)2
members.
More than 50% of respondents reported having private clouds in place. More than 40%
used software-as-a-service, but more than 70% said they lacked the skills to secure
cloud-based technologies.
Government spends £9.4bn on top ten most expensive ICT contracts
The government's top 10 most expensive IT contracts are worth a combined value of
£9.44bn, Computer Weekly has found.
The government's recently published data on ICT projects worth more than £1m totals
around £16bn, with as much as 60% coming from the 10 most expensive contracts.
Of around 150 contracts listed, the Department of Work and Pensions' Enabling
Retirement Savings Programme (ERSP) is the most costly at £1.88bn, followed by the
Data Centre Consolidation, G-Cloud and Applications Store for Government (£1.55bn)
from the Cabinet Office.
The government had pledged a cap on contracts worth more than £100m, but a recent
report from the National Audit Office suggested this limit may no longer be implemented.
31

32. e-Skills Technology Insights 2011: Key findings
- The UK’s IT & Telecoms industry delivers an annual GVA contribution of £81 billion,
9% of the total UK economy.
- IT & Telecoms is at the heart of every UK sector, underpinning the GVA contributions
of all businesses.
- Exploiting the full potential of technology could boost the UK economy by an additional
£50 billion over the next 5 to 7 years.
The IT & Telecoms sector will underpin the majority of future job
creation in the UK
- One in every 20 people (1.5 million) working in the UK is employed in IT & Telecoms.
- Employment in the IT industry over the next decade will grow nearly five times faster
than the UK average.
- Over half a million new IT & Telecoms professionals are needed in the next five years,
working across all sectors of the economy.
- In terms of GVA contribution per head, an individual working in the IT & Telecoms
industry is almost twice as productive as the average UK worker.
Trends shaping IT skills change
32

33. Attracting high quality recruits to the IT & Telecoms workforce is
crucial for the competitiveness of all sectors of the economy.
- IT & Telecoms in the UK is increasingly focused on higher value, highly skilled roles
that harness technology to drive innovation and wealth creation across the whole
economy.
- Of those firms with IT & Telecoms professionals, around one in ten report gaps in their
skills, most often in their business and technical skills.
- Nine of out ten firms suffering IT & Telecoms related skills shortages are experiencing
delays in the development of new products or services.
Workers across the UK economy need higher levels of IT User skills,
with IT literacy increasingly a prerequisite for employment.
- 22 million people - 77% of the UK’s total workforce - use IT in their jobs, and this
proportion will continue to rise.
- 92% of advertised vacancies require applicants to have basic IT skills.
- Gaps in IT user skills are reported by around 1 in 10 UK businesses.
There has been a decline in the number of young people studying
technology at school and university.
- Since 2002 there has been a 33% reduction in applicants to computing degree
courses. In contrast, applications to other STEM courses have increased by an average
of 23% over a similar period.
- Only 9% of students taking A-level Computing and 15% of those on computing degrees
are female.
- The proportion of IT & Telecoms professionals under 30 has dropped from 33% in
2001 to 19% in 2010 as the sector favours experienced workers from other sectors over
young recruits from the education system.
http://www.e-skills.com/
33

34. Spring Technology operates internationally, recruiting permanent and contract IT professionals. As the UK’s
largest technology staffing provider, our expertise lies in an in-depth knowledge of specialist markets and
our vast bank of highly skilled candidates around the world.
We place over 12,000 people in jobs each year at all levels from front line support to IT Directors.
As one of the UK’s most trusted and dynamic IT recruitment consultancies Computer People is a key partner
for companies looking to recruit permanent and contract IT professionals. Through their network of 16 UK
offices Computer People provides localised and expert IT recruitment services across a range of specialist
disciplines, including business analysis, Oracle, Microsoft dynamics, business intelligence, development,
security & audit and infrastructure. It is this approach, specialist knowledge and accessibility that has earned
Computer People a reputation as one of the leading suppliers of professional IT talent.