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CPHC ConferenceLondon – 2nd April 2008

Technology CountsIT and Telecoms Insights 2008

Julie Grady

© Copyright e-skills UK Sector Skills Council Ltd 2000-2008

Vision and Mission

VISION: The UK’s world-class technology-related skills pool underpins

productivity and business competitiveness in every sector:

• The IT & Telecoms professional skills pool is a significant cause of high value jobs being located in the UK;

• All organisations in every sector are fully realising the potential of IT to support their business goals; and

• All individuals to have – and continue to develop – the IT user skills to fully participate in the e-economy.

MISSION: Unite employers, educators and government to ensure the UK has

the technology-related skills to succeed in the global economy.

Background

• Suite of ground breaking research reports looking at the key trends, opportunities and challenges facing the UK in terms of IT & Telecoms and the UK’s skills base.

• With input from over 4,000 employers and expert global analysts

IT and Telecoms today

• The IT & Telecoms sector provides the engine for productivity and future growth across the whole of the UK economy.

• IT-intensive sectors represent:– 55% of the UK’s total Gross Value Added (GVA), and

– GVA per job (£81,400) in the IT & Telecoms industry is nearly 3 times that of the average for the UK.

• Over 109,000 businesses in the UK’s IT and Telecoms industry. Of these:– 92% in IT – 8% Telecoms

IT and Telecoms Workforce

• 1 in 20 (1.5 million) people employed in the UK work in IT & Telecoms Workforce– 888,000 in the IT & Telecoms industry itself – 588,000 IT or Telecoms professionals in other

industries. • Just over 1 million IT professionals• 56,000 Telecoms professionals

• The UK’s IT & Telecoms professionals are highly qualified.– Over half (55%) hold a qualification at Level 4 or higher

(degree equivalent), nearly double that of the UK working population overall (32%).

IT occupations

• Employment in IT professional occupations has almost doubled since the early 1990s. • 40% are now employed as ‘ICT’ Managers or ‘IT Strategy and Planning Professionals

IT and Telecoms occupations

Table 7: Growth of IT & Telecoms professional roles by occupation, 2001-2007

SOCDescription 2001 employees 2007 employees % growth

1136ICT Managers 200,000 286,000 43%

2131IT Strategy & Planning 126,000 140,000 11%

2132Software Professionals 316,000 317,000 1%

3131IT Operations Technicians 121,000 125,000 3%

3132IT User Support 69,000 48,000 -30%

4136Database Assistants & Clerks 96,000 60,000 -38%

5242Telecoms Engineers 58,000 39,000 -33%

5243Line Repairers and Cable Jointers 14,000 17,000 27%

5245Computer Engineers 46,000 37,000 -20%

 Total 1,047,000 1,069,000 2%

Source: ONS LFS Jan-March 2007 (Note: figures may not add up due to rounding)

Emerging Trends

Key forces for change which are shaping the development of technology, the nature of business and the wider economy, include: Business and economic factors

e.g. impact of globalisation Technology driven factors

e.g. industrialisation and standardisation of IT Social factors

e.g. green IT, social computing.

Implications for the IT & T Workforce

Many traditional IT ‘entry level’ jobs are increasingly located off shore.

Work in the UK is increasingly focused on the application of technology to improve business performance.

“We need IT professionals who understand how

technology and business processes interact and can take a leadership role in IT-enabled business transformation” e-skills UK Board member

IT & Telecoms professionals are increasingly expected to be multi-skilled, with business technical and interpersonal skills.

Implications: IT & T Workforce

Growing importance will be placed on skills in: relationship management, business, process analysis and design, project and programme management, business change management, systems architecture, networking, risk management and security web and internet partner and contract management of outsourced

work.

IT & T: Growth dynamics 2007 - 2016

IT industry employment is predicted to grow at 5 times the UK rate (2.5% and 0.5% p.a.).

The combined IT and Telecoms industry workforce is expected to grow at 1.9% p.a.

Growth is primarily in ICT Manager (26%), IT Strategy & Planning (14%) and Software Professional (33%) roles. As nature of jobs in the UK changes – growth is

primarily in high value roles. With increasing need for customer and business-

oriented skills as well as sophisticated technical competencies.

IT & T: Growth dynamics

Recruitment needs – the numbers..

Recruitment (growth and replacement) into IT & Telecoms professional jobs will average 179,800 people a year to 2012.

Of the 179,800, only 38,600 will be filled by people moving from one ICT job to another (i.e. “churn”)

There is a need, therefore, for an average of 141,300 new entrants a year into IT & Telecoms professional job roles.

Table 12: IT & Telecoms professionals – recruitment sources for new entrants

Recruitment sourceNumber

(average p.a. to 2012) %

Employed individuals in occupations other than IT or Telecoms 70,900 50%

Individuals joining from education 26,800 19%

Other sources[1] 43,600 31%

Total 141,300 100%

Source: ‘IT & Telecoms Insights: Employment Forecasts’, e-skills UK/Experian 2008

[1] E.g. people entering or re-entering the workforce after a career break, after early retirement or from unemployment.

Recruitment from HE

> Of the graduates entering ICT roles 55% were from Computing or Telecoms degrees and 45% from other subjects. (HESA survey 6 months after graduation)

Recruitment Difficulties

Over a fifth (22%) of IT & Telecoms companies who were recruiting report difficulties in attracting applicants with the right skills.

Across all sectors 22% of micro establishments recruiting into ICT roles rate applicants’ skills levels as below those required.

Virtually all (92%) of companies experiencing problems when recruiting IT & Telecoms staff report a negative impact on their company’s activities.

Skills gaps by job role

Employers skills needs 1

Employers report that over the coming 3 years: there will be an increased need for higher skilled

professions (e.g. lead professionals), with less need for lower skilled professions.

Table 17: Change in development needs by level – IT & Telecoms professionals

Skill level Up-skilling need

(proportion of total) - current

Up-skilling need (proportion of total) - to

2010

Variance

Associate professional & lower 16% 0% -16%

Professional 27% 5% -21%

Senior professional 38% 35% -3%

Lead professional 19% 60% +41%

Total 100% 100%

Source:’ IT & Telecoms Insights: Employer Skills Needs Survey’, e-skills UK 2008

Training

Most of the training (77%) for ICT professionals does not lead to a formally recognised qualification, with 40% of technical training is working towards a recognised vendor-specific award.

Private training provision is, by far, the most popular route option for technical training for vendor awards (used by 83% of organisations that trained their staff).

Around 18,000 people a year (2% of the IT & T professional workforce) enrol onto publicly-funded training programmes for IT & Telecoms professionals.

Technology CountsStudents and education

Higher Education1

IT related HE remains an important source of talent for the IT & Telecoms workforce

There has been a massive drop off in the uptake of Computing degrees in the last five years

UK applicants to IT-related degree courses have dropped by 50% over the last five years, down to 13,500 people by 2006 from 27,000 in 2001.

18% of total acceptances into Computing discipline degree courses and HNDs come from clearing

Higher Education 2

Schools and Colleges 1

The drop off in students taking A-level Computing (45%) mirrors that of IT-related degrees (50%). There are also dropping numbers on the GCSE in ICT.

Schools and Colleges 2

There are widespread concerns amongst both employers and Higher Education about the technology curriculum in schools*.

Widespread negative experience students have with the GCSE in ICT is a primary reason for the drop off in interest at A-level**.

IT at school prior to the GSCE curriculum was generally described as fun and interesting

*research by both e-skills UK & Council for Professors and Heads of Computing

**research by e-skills UK 2007

Gender

Gender imbalance, which is evident in the ICT professional workforce, is also prevalent on IT-related courses, and this is worsening over time throughout the education system

Table 24: Gender balance on IT-related courses

Qualification Percentage of

females2001

Percentage of females

2007

Variance

Applicants to Computing discipline degree courses 18% 15% (2006 data)

-3%

A-level Computing 14% 10% -4%

A-level ICT (IT user skills) 33% 37% +4%

A-level Applied ICT (IT user skills) n/a 42% n/a

IT & Telecoms professional occupations 22% 19% -3%%

Sources: DfES, JCQ, UCAS

Implications

• There needs to be a major review of technology-related education pre-19

• Correct misconceptions amongst students, particularly females, about the nature of IT-related education and careers

• Development of IT user skills should be decoupled form the study of IT (GCSE, Diploma and A-level)

• Building on linkages between Higher Education and employers at the sector level will help to promote and develop relevant courses.

Employer skills needs ..the implications

• Opportunity for Higher Education to increase participation in the up-skilling of the existing workforce with offerings tailored to meet employer needs.

– Growth in courses that bring together computer science departments and business schools

• Need for all managers and leaders to have skills in strategic IT management

– Valuable part of many courses, across range of degree subjects

• New partnerships, including linking with private training providers and recognising employers’ own development programmes.

Contact and Information

- Download the reports and input into our strategic planning, visit

www.e-skills.com/insights08

- julie.grady@e-skills.com

- Tel: 02076032136

e-skills UK programmes

10 - 14

14 - 19

19 – 22+Information Technology Mgmt for Business (ITMB) degree

The Diploma in IT

Computer Clubs for Girls (CC4G)

Educational programmes Sector attractiveness R

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AmbITion

Changing student attitudes

Catalyst

Supporting curriculum evolution

Professional Development Programme Existing Workforce

Future Workforce

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Technology CountsNext Steps

Underpinning Strategy

Technology Counts, as a core evidence base, together with bespoke regional and national labour market information, will underpin strategic skills plans for the four nations of the United Kingdom. 

The plans will be developed with employers and other key partners and set out priorities for collaborative action to make the UK world class in technology skills.

Backup slides

IT & Telecoms professionals

The proportion aged 16-29 has dropped from 32% in 2001 to 21% in 2007 as …..

…..the sector favours experienced workers from other sectors over young recruits from the education system.

Implications for wider UK workforce

Business leaders and managers – able to

Release the transformational power of IT through…. a co-ordinated and integrated business and IT strategy with … the skills to exploit and deliver IT across all business processes and

organisational structures a rapidly increasing need for business leaders and managers to develop

technology-related skills

IT users will need - Increasingly high skills in information and analytics/business analysis… …increased levels of skills in basic desk top technology, as well… …as security management and IT support processes and tools.

Emerging Trends

Employers skills needs 2

Employers also report a change in skills development needs to 2010: Substantial upskilling now in software development

and service delivery to fix current skills gaps but decreasing emphasis in 3 years time

Increased emphasis by 2010 on specific competencies in: architecture and systems planning, information management and security, and management and procurement.