It Market Report Q1 2011 (Cp Retail)
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Computer Peoples Q1 IT Market Report

Computer Peoples Q1 IT Market Report

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It Market Report Q1 2011 (Cp Retail) Document Transcript

  • 1. IT market reportQuarter 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 28Sources 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) | TheRecruitment & Employment Confederation (REC) | E-Skills | UK Bank of Scotland | CWjobs | British Chambers of Commerce
  • 3. Comment Economy Regional Marketplace IT market IT newsA word from the Managing Director…2011 – The return of the candidate-driven marketIn the past month the market has changed to one where top Jim Albertcandidates are seeing multiple offers, counter offers, and Jim Albert is the IT & Engineeringsignificant raises. This is a clear signal of a shift in hiring, Managing Director, for Adecco inand 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 byIT demands ‘business all-rounders’ education, Jim worked at Bell Labs and in other technical and salesThe days have gone when an IT professional could excel in positions within the IT businesstheir 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 togreater and more exciting opportunities to leadorganisational change than ever before, while those thatdon’t risk being pigeon-holed as back office implementers.The message coming out of our conversations withemployers is loud and clear: they want much more thantechnical and project management expertise. In short, thefuture IT professional needs to be a master of manydisciplines – truly a business all-rounder. 3
  • 4. EconomyComment 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 bouncein February, according to a closely watched index, leavingoverall 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 apicture of a housing market that is treading water, rather “ A weakeningthan falling, as sellers retreat from the market. jobs market,Increase in mortgage approvals muted economicBritish mortgage approvals picked up more than expected in growth, ultra-tightJanuary and mortgage lending rose to its highest in almost ayear, Bank of England figures showed. However, consumer fiscal policy, pluscredit contracted at its fastest pace in over a year andmoney supply growth remained weak, suggesting overall well above targetcredit conditions remained far from normal at a time ofeconomic uncertainty. price inflation and the greaterManufacturing growth remains at record high prospect of anBritish manufacturing growth held at a record level inFebruary and factory costs stayed near January’s survey interest rate hikehigh, suggesting price pressures are continuing to build. TheMarkit/CIPS headline manufacturing Purchasing Managers’ sometime laterIndex (PMI) stood at 61.5 in February, unchanged fromJanuary. That was the highest since the survey began in this year provide1992 and above the consensus forecast of 61. all the ingredients for aInflation will rise sharply says Mervyn King ‘perfect storm’ toThe Governor of the Bank of England, Mervyn King, has saidinflation will rise sharply in the first half of this year before hit the UK 4falling back next year. economy ”But he said there were "large risks" that inflation couldovershoot or undershoot the Banks 2% target. He reiteratedhis belief that external factors, such as rising food andenergy prices, are the main cause of rising prices in the UK. Dr John Philpott, CIPDMr King said growth would be weaker than the Bank forecastin November.In the Banks inflation report, the governor said that oncecost pressures from high commodity prices subside, "CPIinflation will then fall back. But the extent to which it will doso is uncertain, and there are large risks in both directions." 5
  • 6. Inflation 2000-2010 (Percentage change over 12 months) Source: ONSOfficial 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 whyCPI inflation was twice the Banks target rate. "Only time will tell. The judgements aredifficult", he concluded.Labour market still showing signs of fragilityThe labour market showed some weakness in quarter four 2010, with employment levelsfalling 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 situationsfor 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 employmentfell by 600,000. In the 1980s recession, the final quarter of economic contraction sawemployment levels 619,000 lower than pre-recession level. At the end of the 1990srecession, employment was 910,000 lower than it was prior to the recession. 6
  • 7. The economy remains below the level of outputrecorded before the start of the recession. GDPhas recovered about a third of the output lostduring the recession. In the past two recessionsit took just over three years for output to reachpre-recession level.The UK economy over the past 3 recessionsGDP fell 4.6% in the 1980s recession, by 2.5%in the 1990s recession and by 6.4% in the 2000srecession.Exceptional weather conditions contributedto fall in GDPGDP fell by 0.5% in quarter four 2010. Thisfollows four consecutive quarters of economicgrowth between quarter three 2009 and quarterthree 2010. The main areas contributing to thedecrease 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, thefigure was influenced substantially byexceptional weather conditions. These areestimated to have accounted for 0.5% so that, inunderlying terms, growth was broadly flat. 7
  • 8. Oil crisis could put us back into recessionBritain could be plunged back into recession by soaring oil prices, experts have warned.Crude leapt to almost $120 a barrel, its highest fornearly three years, on the back of the Libyan crisis.Bankers at stockbroker Nomura said it could hit anincredible $220. Petrol industry chiefs saidmotorists face hikes of TEN PENCE per litre at thepump - given the spiralling cost of crude and theChancellors upcoming fuel duty hike.British Gas said it could push up bills while softdrink giant Britvic revealed the cost of plastic usedin bottles went up 20% in the past month.Asda said families disposable income in Januarywas a record £9 a week lower than a year ago.Gerard Lyons, chief economist at StandardChartered, 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 feedglobal demand. The AA said petrol prices hit a new record - with unleaded averaging129.05p per litre and diesel 134.41p.CEBR predictions for 2011…- Yet another Eurozone crisis in the spring if not before, when Spain and Italyhave to refinance in aggregate over €400 billion of bonds. The euro might break up atthis point, though European politicians are normally able to respond to a crisis and itssuspected that the cause will be the failure of most of the countries to take the toughmedicine necessary to make their economies competitive over the longer term. We giveit only a one in five chance of surviving in its present form for ten years. If the eurodoesn’t break up, this could be the year when it weakens substantially towards paritywith the dollar.- Slower economic growth. As the boost from the end of de-stocking comes to anend, countries will have to rely on the fundamentals - in the fast growing Easterneconomies, growth will have to slow because of inflationary fears. For the UK, all this willcombine with the effects of fiscal retrenchment as the government tries to bringborrowing under control. A double dip for the world economy is not likely because of thestrength of the emerging economies. But it is well within the bounds of possibility for theUK. 8
  • 9. - Germany to be the Western economic superstar again. Germanperformance, in some sense subsidised by the euro which has the same effect for theGerman economy that the cheap renminbi policy has for the Chinese economy, is likelyto continue to be stunning. With the costs of unification gradually absorbed and a highlycompetitive exchange rate, Germany is setting the pace in Europe. One of theinteresting elements of Germany’s recent economic success has been the role ofimmigrants – primarily Turks but increasingly from other countries – who now seem to beboosting the German economy in the same way that their equivalents have boosted theBritish economy in the past 20 years.- A serious economic crisis in Japan. Japanese debt is now 200% of GDP andif it grows will need foreign financing which may be difficult to achieve. It is likely that thegovernment will have to embark on fiscal retrenchment. Meanwhile, growth in the mainAsian export markets will slow and the aging population will force the government toraise the retirement age again, this time to 75!- Inflation to be a bit lower than is conventionally expected. The end ofthe inventory turnaround and the prospect of more normal wheat and cotton growingweather should bring prices of commodities down. While interest rates –raised in Chinaagain on Christmas Day – should continue to rise in the fast growing Easterneconomies, they could remain flat in the US, the Eurozone and the UK.- Another tough year for consumers. The VAT rise, combined with highcommodity prices at the beginning of the year and depressed average earnings andfalling employment mean that disposable income will fall. Whereas last year the fall wasoffset by consumers running down savings and by spending less on utility bills (at leastuntil the cold December), this year there is not a lot of cushion left. So expect consumerspending 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 dominantdriver of consumer spending. Two new technologies which we expect to start to grabattention in 2011 are cloud computing, which in effect is renting access to yourserver, and ‘telepresence’, the use of HD TV to provide teleconferencing that is suchhigh 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 theircapital bases restored after the problems of 2007/08. We expect them to lend morecompetitively in 2011 – either because they can afford to or because the governmentgets fed up with their monopolistic attitudes and start to adopt more aggressive policiesto 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 newsUK’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 agreementwith 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-basedAvacta to develop and market other advanced technologies and analytical servicesaimed 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 engineeringservices for a new £210m distribution centre in Dordon, North Warwickshire.Waldeck, which also has offices in Peterborough, Sleaford, Lincoln, Nottingham andNorthampton, is responsible for the structural design of the Customer Fulfilment Centre(CFC), Ocados second, and the infrastructure on the 35-acre site on the Birch CoppiceBusiness 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 yearago to reach an average of £183k- Plans to transform part of Coventry city centre with an exciting new multi-million-poundsuperstore, retail and leisure development are being unveiled. The site comprisesapproximately 3.5 acres with the proposed scheme producing a completed developmentvalue of around £50 million.Midlands-based Barberry Developments has completed the purchase of the 200,000 sqft 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. Thedevelopment will be known as Bishop Gate.- Browne Jacobson has advised Staffordshire County Council on one of the countrysfirst Public Sector Networks (PSN). 11
  • 12. The network, which is being delivered in partnership with KCOM, will be accessed byaround 200 council sites and 400 schools, including all Borough and District councils inStaffordshire. South Staffordshire Health is already committed in principle anddiscussions are taking place with wider partners such as Staffordshire Police andStaffordshire Fire and Rescue service.The initial £23m contract, which is for five years with the option to extend for a furtherfive years, will involve sharing services including telephones, a County-wide computernetwork, 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 tobecome the country’s fourth-highest region with an average of £214k.- Alpha Biologics at Babraham has been acquired along with its Malaysian parent byCalifornia company Viropro in an all-share deal valued at $21 million - just under £13m.- Global engineering and project management firm, AMEC, has made a £33macquisition north of the Border. The East of England company has acquired qedi, amarket-leading oil & gas completions and commissioning services company based inAberdeen.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 tomajor healthcare advances. A team of highly-skilled staff would be responsible forcataloguing and filing the data and providing user support, and it is predicted that theproject would create around 100 hi tech jobs.South East- Only London saw a greater increase in house prices over the past year (12.1%), whichnow 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 forjobs in the city by the sea. According to a December 2010 to January 2011 survey byBrightonandHoveJobs.com, more than a third (36%) of employers plan to create newjobs and take on new staff over the next 12 months, while 17% said they expectedhigher than average growth which could lead to new jobs. A mere 4.3% said they werelooking 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 capitals 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 byaverage 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. Its 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 colleges 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 Bransons 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 hireTimeline 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 month1997 - £1bn funds invested by Easyjet to create 60 jobs in Scotland200,000 customers The airline is launching four new routes from Scotland, including1999 – company wins service a new direct service from Aberdeen to London Gatwick.excellence award2002 – Virgin credit card launched Three additional services - to Athens in Greece, Tenerife and Grenoble, France - are starting at Edinburgh Airport in2007 – named Britain’s fastest September. The move is expected to increase passengergrowing 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 contractAtos Origin has won a five-year contract with FirstGroup to improve IT infrastructure inNorth America. The $30 million (£18.5m) contract involves Atos consolidating Firstsdata centres which have grown through recent acquisitions.Atos Origin in Scotland also provides a number of services to First including railoperating systems, real-time management and deployment of vehicles and staff as wellas ticketing solutions and customer information systems.Scottish government pledges £10million to provide incentives to SMEs to hire newstaffThe Scottish government has launched a new £10 million incentive fund for smallbusinesses 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 andmedium-sized companies to take staff on, assist in hiring new employees and encourageScotlands exporting companies.Under the plans outlined, £5 million will be spent on an Employer Recruitment Incentiverun by Skills Development Scotland.Employers will be offered £1,000 for each recruit to encourage job creation to over-18sunemployed for six months or more or already participating in Skills DevelopmentScotlands Training for Work programme.A further £2.5 million has been pledged for Small Business Employment Support toassist companies with less than 50 employees with £1,000 subsidy to meet the cost ofrecruitment and payroll. And another £2.5 million will go towards a new Export Supportinitiative to help around 100 companies to exploit opportunities in new markets.John Rendall confident of HSBC expanding Scots market shareHSBCs Scotland chief executive insisted the bankis continuing to make inroads into the Scottishmarket despite customers remaining loyal to theirlender through the financial crisis. “ We are winning the kindJohn Rendall said the banking crisis did not appear of customers we set out toto have made businesses much more likely tochange banks, with only 5% a year switching. win, and keeping them ”"We are winning the kind of customers we set outto win, and keeping them," he said. "But we havelearned that the end to end process can be longer than we might have thought."Orkney-born Rendall was appointed as HSBCs Scotland boss in June 2009, tasked withtaking advantage of the turmoil among competitors to grow the banks relatively smallpresence north of the Border. 15
  • 16. Northern Ireland- The highest job density per person outside ofLondon was Belfast (1.33 jobs pp)- Conversely, Carrickfergus had the lowest jobdensity (0.38)- Northern Ireland had the lowest average gross payin the UK (£441/week)- House prices in Northern Ireland fell by 1.6% on Q42010, but plummeted by nearly 21% over the pastyear – the only place in the UK to do so. Theaverage price now stands at £161k.- County Antrim bus builders Wrightbus have Ulster Bankannounced a major new order from the UK for 334new buses. The contract with bus operator Arriva is Across the Republic of Ireland and Northernvalued 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 millionUlster 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 distinctfor 2010 in its annual results bulletin. divisions: - Ulster Bank Retail MarketsThe Royal Bank of Scotland Group (RBSG) company - Ulster Bank Corporate Marketssaid "deteriorating" economic conditions acrossIreland had impacted their performance. Timeline 1836 – Ulster Bank is foundedProfits 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 Bankrecovery of our business," said Ulster Bank CEO becomes a wholly owned subsidiary of RBSCormac 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 ourcost base."Mr McCarthy added that customer deposit balanceshave increased by 8% over the year. He said theRBS Group remains "committed" to its business onthe island of Ireland."In 2010, we announced a programme of initiativesthat highlights our commitment to the island ofIreland and to our 1.9 million customers," hecontinued. 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 25817
  • 18. MarketplaceComment 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 (000s) 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 Jobseekers 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 alsoTable 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, WalesSource: 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 againAverage total pay (including bonuses) in the private sector was £449 per week inNovember 2010. In the three months to November 2010 total pay in the private sectorrose by 1.9% on a year earlier.The equivalent figures for the public sector were £469 per week, and an increase of2.4% respectively.Average total pay (including bonuses) was £455 per week in November 2010. In thethree months to November 2010 total pay rose by 2.1% on a year earlier, unchangedfrom 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 redundant18,000 from the three months to in the three months before the LabourSeptember 2010 and up 14,000 from a Force Survey interviews, up 14,000 fromyear earlier. The estimates include the three months to August 2010 butvacancies for temporary jobs in down 25,000 (-19%) from a year earlier.connection with the 2011 Census, whichhave been advertised since October 2010. The redundancy rate was 6.3 per 1,000 employees, up 0.5 from the previousThere were 1.8 vacancies per 100 quarter but down 1.1 from a year earlier.employee jobs in the three months toDecember 2010, up 0.1 on the previousquarter and on the year. 20
  • 21. “ There are still five candidates for every single vacancy ” Liam Byrne, Shadow Work & Pensions SecretaryPermanent placements rise at a faster paceNumbers of permanent placements and temporary/contract billings rose at faster rates inJanuary, according to the latest Report on Jobs from the Recruitment & EmploymentConfederation (REC).The report shows latest increases were the most marked for six and seven monthsrespectively, while recruiters report increased staff appointments reflect a further rise invacancy levels at employers with overall demand for staff growing at its fastest pacesince June 2010.Meanwhile, the availability of staff to fill permanent jobs remained broadly stable inJanuary, following a quarter of growth, while temporary/contract staff availabilitycontinued 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 & Developmentprofessionals have been increasingly in demand since the beginning of 2011.Opportunities cross both public and private sectors, but the emphasis is tending to be atthe specialist and managerial level. Organisations are feeling more confident about thefuture and are now willing to make these longer-term investments.”…but its bad news for Interim ManagersThe interim management market experienced an 8% drop in demand over the past sixmonths, 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 a6% 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 twoprevious periods of decline recorded from 2008, when the recession was gatheringpace. 21
  • 22. Adecco warns of ‘lack ofawareness’ about AWRThe Head of Regulation & Employment at Adecco Grouphas warned that many employers show “an alarminglack of awareness about the Agency WorkersRegulations (AWR)”.Andy Smith says: “Publication of guidance by thegovernment has been delayed by its deliberations over a Andy Smith, Adecco Grouppossible review and is not expected until this spring. Butmany organisations need to understand the potentialimpact of the regulations now because they are AWR – ‘need to know’ pointsdeveloping their HR and budget plans for 2011.” - They will come into force on 1st OctoberMike Emmott, CIPD public policy adviser, says: “It is 2011.important that employers should make their ownassessment of how the regulations will affect them, - The key aspect of the Regulations is thebased 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 hiredUK’s flexible labour market and it would be damaging if direct to do the same job.employers were to make decisions about theirrecruitment strategies based on misunderstandings - There is a qualifying period of 12 weeks.around the scale of the impact the regulations are likelyto 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 thepublishing of a new guide by the CIPD, in partnership - Employment tribunals will have discretion towith Adecco, which aims to help employers prepare for make an award of no less than 2 weeks pay for equal treatment claims and pay betweenthe 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 managedemployment terms and conditions of agency workers service contracts.after a qualifying period of 12 weeks to be no lessfavourable than those that would apply if they had been - The right to equal treatment includes basicrecruited 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 marketComment 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 Forstrategy £50m Broadband FundThe Scottish government has outlined plans to improve Local authorities can now bid for a share of the £50 million released by government for broadbanduptake of broadband across the country, as well as foster investmentincreased participation in digital activities, in a reportentitled Scotlands 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 publicScotlands digital future," said Scottish culture minister authorities are being invited to bid for a share of the £50 million fund, which is intended to extendFiona Hyslop. Internet access to areas of the country that are not commercially attractive to Internet serviceThe report coincides with the release of £1.5m by the providers.Scottish government to fund activities throughout 2011designed to increase the uptake and use of fast More than half of the this investment – £300broadband, including moves to get more businesses million – will come from the TV licence fee, with the remaining £230 million to be provided from theonline. government purse. Around 2 million households will benefit from this investment, according to theThe report outlines plans to get Scotland fully connected review, including some of the most remote areasto 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 coalitions£830m super-fast broadband war chest, Scotland will beworking with local authorities and other stakeholders todevelop a strategic infrastructure plan for Scotland.Further to this, plans to develop an online portal forScottish public information and services are under way,and a beta site is set for launch by the summer.Despite these moves, CIVIC, an independent creativedigital agency, believes Scotlands digital plans are stillmissing some key elements."We would expect to see a move towards simplification,automation and a reduction in duplication [within thestrategy] but this principle is nowhere to be found," saidCIVIC 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, althoughsector ICT, and we believe this would open the way for this will rely heavily on the private sector. BT hasmore responsive, cost-effective solutions from Scotlands promised to match any of that money which thesmaller 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 anoverlooking open source. "Its 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 Economicsmentioning 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 oravailable 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 UKrequirement for any government seeking to be in charge homes by 2015. BT believes that the newof 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 comparedto 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 retailorganisations 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 retailThe table below shows the programming vacancies retailers advertised for during thefourth quarter of 2010."This surprising figure is due to a number of factors, which include better developmenttools becoming available that lead to improved productivity, more reliable software andhardware needing considerably less support and operations staff to run computercentres," said George Molyneaux, research director at SSL.Salaries for permanent staff in the retail sector increased by 2% since 2009, whilstsalaries 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 2010UK Internet Economy Worth £100 Billion a YearA report by The Boston Consulting Group (BCG) has identified the value of the Interneteconomy in the UK. The report reveals that the UK Internet economy contributed £100billion in 2009, representing 7.2% of U.K. GDP — more than construction, transport, orutilities. The report finds that this share is likely to grow by about 10% annually, reaching10% of GDP by 2015.Around 60% of this total is driven by “consumption” - the amount that Internet usersspend on online shopping and on the cost of their connections and devices to access theInternet. The remainder comes from investment in the United Kingdom’s Internetinfrastructure, government IT spending, and net exports. 25
  • 26. IT jobs: Hiring back to pre-recession levelsIT recruitment has bounced back to pre-recessionlevels, according to a new survey.It also found that general hiring activity levelsduring 2010 were comparable with those in 2007before the recession hit many tech jobs.Application developers with expertise in ApplesiPhone and RIMs BlackBerry were found to beparticularly in demand, with infrastructurespecialists and professionals with strong enterprisebackgrounds highlighted by the report as being themost consistently in-demand IT workers.Linux and PHP developers were also sought after,according to the report, with businesses alsofocused on hiring IT staff with skills in open-sourcetechnology.Very few IT employers hiring to fill skills gapsTraining day, not hiring day, is the focus of IT departments planning to fill internal skillsgaps 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 theirtechies weren’t adept on systems already in place to effectively support the outfit’s widerobjectives. And upgrading the organisation’s hardware won’t help, a third of the leaderssuggested, as the existing IT team wouldn’t “have the right expertise to cope with newsystems at all.”But rather than hiring, IT leaders say they will plug the skills gap by training existing staffalready on the payroll, implying IT departments lack the resources to invest in newtalent. Under greater pressure to make technology deliver commercial objectives, Modisadded, IT leaders “dont have the tools and in some cases the teams to do all aspects ofthe job.”Managing Director, Jim Albert sympathised, saying commercial demands on ITpersonnel were often “highly complex”, requiring specific knowledge of statistics anddata 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 ITworkers.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 10months. 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 by60% since 2003, and IT graduates have declined by 44% since 2001. With increasedtuition fees this is unlikely to change - e-Skills anticipates just 18,200 entrants fromeducation. This leaves 91,800 to recruit through other avenues. The good news is thattalented 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 ITMany dont consider IT as a career path because theyassume its all about programming and requires a professionals are needed in thecomputing degree. However, recent CompTIA research UK over the next 5 yearsfound 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/technicalsupport (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 peopleIf UK plc is to reap the economic benefits of IT, we need to ensure good training andqualifications are available to attract new blood and develop existing professionals.There is encouraging news. The governments Blueprint for Technology aims for the UKto become the most attractive place in the world to start and invest in IT companies. Itplans 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 - whohave the most to lose from lack of skills - also act to bring people in. IT companies needto 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 theprofession, as they validate an employees skills and boost their confidence.Dont forget about our existing talentWe must not forget about the talent we already have. The report showed one in 10 firmsreported gaps in IT staff skills, which is cause for concern. We are relied upon to keepabreast of the latest technical innovations and security threats in a rapidly changingworld - we cant afford not to keep skills up to date.Training and certifying existing staff equips them with the expertise and motivation tomeet an organisations changing needs and supports career development. In an industrywith more jobs than qualified people, employees can afford to be picky. Companies needto show them they are valued. Training and certification is one of the best ways to booststaff retention and recruit top talent.Not being left behindIt is critical, both for our sector and the UK economy, that we increase the numbers of ITprofessionals. This means promoting the value of a career in IT, and training andcertifying IT staff. If we dont 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 newsComment 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 firms global retail banking operations. This is largely due to the insourcing of operations and the companys 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 2009s 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 departments 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 CRMThe customer relations management (CRM) market is set for a shake-up in the nextthree years as global spending on social CRM software passes the $1bn (£620m) mark,according to the latest research from Gartner.The analyst firms predictions for CRM in 2011 and beyond state that social CRM willencompass approximately 8% of all CRM spending in 2012, up from roughly 4% in 2010.Staff face axe as London councils reveal what shared services willmean for ITThree London councils - Westminster, Kensington & Chelsea and Hammersmith &Fulham - are set to save £400,000 a year by rationalising ICT jobs as part of theirongoing shared services strategy. The councils say this equates to a reduction ofbetween 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 tofour datacentres."There is certainly scope for the consolidation of staff inIT, by merging similar functions and reducing duplicationin some strategic roles. Not all of these are tied up in Since 2001 there has been aoutsourced contracts either," says the document. 45% reduction in applicants to computing degree coursesIt points out, for example, that separate teams areproviding IT desktop, application and network support toprimary schools.KANA Software creates 109 new IT jobs in BelfastKANA Software has announced plans to create 109 new jobs in Belfast, following itsacquisition of local firm Lagan Technologies last November.The US-based service management software company, which names companies likeAdidas, Nokia and eBay among its customers, is investing £7.8 million in the jobcreation. This is also being supported by £981,000 in funding from regional economicdevelopment agency Invest Northern Ireland.KANA will be recruiting the new employees over the next three years. According to itswebsite, KANA is looking for software engineers, project managers and technicalconsultants. The company currently employs 321 staff across the US, UK, Australia andJapan. 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 Shells 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 IrelandFinancial services firm Fidelity Investments has announced plans to create 100 softwarejobs at its offices in Galway and Dublin. The jobs will range from entry-level tomanagement-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 jobssystems that will give the online gambling company acompetitive edge. The company wants to recruitpeople who can help it develop new systems that “aren’t constrained in the way existingsystems are”, according to Martin Davies, CTO of bet365. “We are always on the lookout for more talented people,” Davies said. “For example wewant people who understand low latency systems and how they work.” He added thatJava 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 inStoke-on-Trent. More than 300 of the staff are in IT, which includes around 160developers and the rest employed in supporting functions, infrastructure, databaseadministration and so on.Thousands lose Vodafone serviceVodafones mobile network has been disrupted following a break-in at its exchangecentre in Basingstoke. The company said that several hundred thousand customers hadlost voice, text and internet access.Burglars hit the facility stealing computer equipment and network hardware. Most of theusers 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 makers 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 companys BritainWorks programme, which launched in 2009 and aims to get "500,000 people back intowork by 2012", Stephen Uden, the software makers head of skills and economic affairs,said at the event.Information security professionals must keep skills up to dateThere 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 oftechnology areas, according to the 2011 (ISC)2 Global Information Security WorkforceStudy (GISWS) conducted by analyst Frost & Sullivan.The profession as a whole appears to be resistant to adapting to new trends intechnology such as social media and cloud computing, Frost & Sullivan said in theGISWS survey of over 10,000 security professionals, including 25% of non-(ISC)2members.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 securecloud-based technologies.Government spends £9.4bn on top ten most expensive ICT contractsThe governments top 10 most expensive IT contracts are worth a combined value of£9.44bn, Computer Weekly has found.The governments recently published data on ICT projects worth more than £1m totalsaround £16bn, with as much as 60% coming from the 10 most expensive contracts.Of around 150 contracts listed, the Department of Work and Pensions EnablingRetirement Savings Programme (ERSP) is the most costly at £1.88bn, followed by theData 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 recentreport 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 contributionsof 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 jobcreation 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 fasterthan 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 & Telecomsindustry 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 iscrucial for the competitiveness of all sectors of the economy.- IT & Telecoms in the UK is increasingly focused on higher value, highly skilled rolesthat harness technology to drive innovation and wealth creation across the wholeeconomy.- Of those firms with IT & Telecoms professionals, around one in ten report gaps in theirskills, most often in their business and technical skills.- Nine of out ten firms suffering IT & Telecoms related skills shortages are experiencingdelays 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 thisproportion 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 studyingtechnology at school and university.- Since 2002 there has been a 33% reduction in applicants to computing degreecourses. In contrast, applications to other STEM courses have increased by an averageof 23% over a similar period.- Only 9% of students taking A-level Computing and 15% of those on computing degreesare female.- The proportion of IT & Telecoms professionals under 30 has dropped from 33% in2001 to 19% in 2010 as the sector favours experienced workers from other sectors overyoung 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’slargest technology staffing provider, our expertise lies in an in-depth knowledge of specialist markets andour 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 partnerfor companies looking to recruit permanent and contract IT professionals. Through their network of 16 UKoffices Computer People provides localised and expert IT recruitment services across a range of specialistdisciplines, including business analysis, Oracle, Microsoft dynamics, business intelligence, development,security & audit and infrastructure. It is this approach, specialist knowledge and accessibility that has earnedComputer People a reputation as one of the leading suppliers of professional IT talent.