john higgins director general computing services & software association [email protected]
TRANSCRIPT
John Higgins
Director General
Computing Services & Software Association
Agenda
• CSSA – Who are we?
• The UK IT market
• International comparisons
• Impact on economy and society
• CSSA’s agenda
• The future
• Your turn
Tina Hendzel
Regional Business Development Executive
Computing Services and Software Association
So who are we?
• CSSA is the membership body
representing 85% of the UK’s
software and IT companies
(by turnover)
• Nearly 800 companies belong
to CSSA
Proposition to Members
• How we increase their business?• How we promote them?• How we save them money?• How we represent them?• How we keep them informed?• Who we introduce them to?
Increasing their Business
• European journal – Public sector leads
• Sales Opportunities – FITS service– Commercial
• Unlimited exposure to contacts within member companies
• Certificate – value of belonging…..
Promoting them• Reference book & online database• Exhibitions & Trade Missions
Healthcare/ Utilities Congress/CEBIT
• Public Relations
100 journalist calls & enquiries per month:
Trade & national press
Broadcast media
Saving them Money
• PI Insurance - 25% discount• Discounted Flexible Benefits:
Travel, Pensions, Life Assurance,
Income Protection, Private Medical Ins.• Training courses• Free Legal Advice
Representing them• Public affairs and representation
– influencing policy– representation at Government level
• Research & development projects– ASP– Broadband– Getting it right for Government– Information Security
Keeping them Informed• Special interest groups
– Business sector/function– Public/Private sector
• Educational events– ASP / Data Protection/ IT Skills Shortage /
Employment Law & HR Issues– businessgrowth series– IT Marketing Conference
• Publications– Contract guidelines– Website content and the Law
Introducing them
• Industry lunches/dinners• Partnering event• Seminars• Hospitality days
- (Corporate Events / Industry Ball)
Creating the environment for success
Helping them succeed
Questions?
The UK IT Market
(and international comparisons)
UK’s IT expenditure£ Billion 2000 2001 2004 AAGR
01/04Personnel 13.3 13.9 16.0 4.7%
Hardware 14.8 15.6 18.2 5.4%
Software & Services
21.9 23.8 32.0 10.4%
Miscellaneous 4.7 4.9 5.3 3.0%
TOTAL 54.7 58.1 71.6 7.2%
Source Holway 2001
Software & Services 01/04£ Billion 2000 2004 AAGR
01/04
Project Services 8.46 12.34 +10.4%
Applications 3.20 4.21 +7.4%
Tools 1.12 1.54 +8.4%
Outsourcing 6.92 11.62 +13.9%
TOTAL 19.7 29.71 +11.2%
Source Holway 2001
UK Software and IT Services Industry Growth in Real Terms
(excluding system software and hardware maintenance)
14%
19%
21%
14%
7%8%
9% 9%
7%
0%
5%
10%
15%
20%
25%
1996 1997 1998 1999 2000 2001 2002 2003 2004
Source Holway 2001
SKILLS IN SHORT SUPPLY
Permanent Skills Temporary/contract skills
CAD technicians
Electronic engineers
Hardware engineers
IT developers
Programmers (Java, Cisco, CIEE, C++)
Skilled IT technicians
Software engineers
Telecom engineers
Web developers
IT technicians
Programmers (Java, e, VC++)
Telecom engineers
Web developers
Source:REC Report on Jobs August 2000
SKILLS MOST IN DEMAND
2000 1999 1998 1997 1996 1995 1994 1993 1992 Skill
1 1 3 2 2 3 4 15 - C++
2 8 13 - - - - - - Java
3 14 25 - - - - - - Internet
4 4 4 1 1 1 1 2 1 Unix
5 2 2 3 4 4 6 5 4 Oracle
6 6 6 8 9 9 8 9 12 SQL
7 3 1 4 7 14 - - - WindowsNT
8 5 5 7 8 8 10 17 69 Visual Basic
9 7 7 5 3 2 2 1 2 C
10 21 28 - - - - - - HTML
Source: SSP/Computer Weekly
Top 10 players in UK ITSA market by UK revenues
2000
Rank Company
UK ITSA Revenues
Most Recent FY
£m
Previous
FY
£m
Growth
1
2
3
4
5
6
7
8
9
10
SThree Group
Delphi Group
Spring Group
Hays IT
Elan Computing
MSB Computing
Modis International
Select Appointments
Harvey Nash Group
Best International
260
251
240
200
183
137
123
109
109
96
227
296
256
150
130
178
143
105
90
102
15%
-15%
-6%
33%
41%
-23%
-14%
4%
21%
-6%
TOTAL £1,708m £1,677m 2%
Source Holway Report 2001
Leading Suppliers of Project Services to the UK Market
Rank Company
1999
Revenues
(£m)
IT Consulting
Bespoke
Dvmt
(T&M)
SystemsIntegration
FPD
IT Training
1 IBM 600 X XXX XX
2 PwC Consulting
454 XXXX XXX
3 EDS 435 XXX XXXX
4= ICL 300 X X XXX XXX
4= Andersen Consulting
300 XXXX XXXX
6 Spring 280 XXXX XX
6 Delphi 280 XXXX
8 Syntegra 275 XXXX
9= CSC 232 XXX XXXX
9= Cap Gemini
232 XXX X XXX
Source Holway 2000
Leading Suppliers of Applications Software Products
and Solutions to the UK Market
Rank Company 1999 Revenue
(£m)
Applications Solutions
1 Microsoft 360 XXXX
2 SAP 140 XXXX
3 ICL 90 XX
4 Misys 79 XXX X
5 Sema 79 XX
6 Sage 75 XXXX
7 EDS 65 X X
8 Logica 59 XX
9 Oracle 45 XXXX
10 RM Group 44 XX XXX
Source Holway 2000
28%
21%
4%
35%
4%4%4% System Software
Hardware Maint
Project Services
Tools
Appln Software
Outsourcing/Apps Mgmnt
Value-added Services
Market breakdown by product/ service 1999: £20,980 million
Source Holway 2000
32%
17%
4%
32%
2%2%
11% System Software
Hardware Maint
Project Services
Tools
Appln Software
Outsourcing/Apps Mgmnt
Value-added Services
Market breakdown by product/ service 2003 35,650 million
Source Holway 2000
18%
21%
19%
10%
32%
Manufacturing
Finance
Public Sector
Telecom/Utility
Retail/Transport
Market breakdown by industry 2000: 21.9bn
Source Holway 2001
34%
10%
19%
20%
17% Manufacturing
Finance
Public Sector
Telecom/Utility
Retail/Transport
Market breakdown by industry 2004: 32.0bn
Source Holway 2001
27%
20%
16%
9%
8%
5%
4%
5%
3% 2% 1%
Germany
UK
France
Scandinavia
Italy
Netherlands
Switzerland
Spain
Belgium
Austria
Portugal
European IT Expenditure in 2000 by CountryTotal = Euro 398bn
Source Holway 2001
16%
Europe’s IT expenditureEuro Billion 2000 2001 2004 AAGR
01/04
Personnel 105.5 109.3 121.7 3.6%
Hardware 86.2 89.0 97.2 3.0%
Software & Services
162.9 182.6 260.0 12.5%
Miscellaneous 43.0 44.6 48.8 3.1%
TOTAL 397.5 425.6 527.7 7.4%
Source Holway 2001
Worldwide Information and Communications
Technology Market in 2000
ICT Equipment 33.2% £441bn
Software Products 9.6% £128bn
IT Services 18.7% £249bn
Carrier Services 38.5% £511bn
Total 100% £1,328bn
Source Holway 2001
Gartner Hype Cycle (June 2000) Gartner Hype Cycle (June 2000)
Will reach plateau in
VisibilityVisibility
MaturityMaturity
TechnologyTechnologyTriggerTrigger
Peak of Peak of Inflated Inflated
ExpectationsExpectations
Trough of Trough of DisillusionmentDisillusionment
Source Gartner Research Note 5 June 2000Source Gartner Research Note 5 June 2000
3-D Web3-D WebMicropaymentsMicropayments
5 – 10 years5 – 10 years
DigitalDigitalInkInk
SyntheticSyntheticCharactersCharacters
AudioAudioMiningMining
Over10 yearsOver10 years
Quantum Quantum computingcomputing
WAP/Wireless WebWAP/Wireless Web
JiniJini
Speech RecognitionSpeech Recognition
WebtopsWebtops
BluetoothBluetoothVoice PortalsVoice Portals
BiometricsBiometrics
2 - 5 years2 - 5 years
Smart CardsSmart Cards
< 2 years< 2 yearsASPsASPs
Voice over IPVoice over IP
XMLXML
Enterprise PortalsEnterprise Portals
xDSL/CablexDSL/Cable modemsmodems
Java LanguageJava Language
Plateau of Plateau of ProductivityProductivity
Slope of Slope of EnlightenmentEnlightenment
The future
• Renewed interest in revenues & profits
• Internet hype will subside
• European market growth
• From products to services, transaction- based charging, asp’s
So what?
Economic / social impact
virtual relationships– increases economic productivity?– creates digital divide?– magnifies trust and ethics problems
Information Technology – allows
Role of governments
• Frameworks and rules of the game– nationally– internationally
• Users and exemplars– e-readiness
• Goal setters
CSSA ‘Manifesto’
• Promote the sector• Build trust, reduce access costs & improve
understanding of eBusiness • Highlight info security• Secure good tax and legislative environment• Improve commercial sector/govnt relationship• Attract more women• Improve understanding by educators• Keep members up to date
Fantastic opportunities for you
Case studies
A. Public sector project goes wrong
B. Large IT services co. loses its way
C. Food retailer goes .com
D. eStart-up