1. Inform > Inspire > Educate > Professionalise > CPHC Conference London – 2 nd April 2008 Technology Counts IT and Telecoms Insights 2008 Julie Grady © Copyright e-skills UK Sector Skills Council Ltd 2000-2008

2. 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.

3. 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

4. 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

5. 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%).

6. 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

7. IT and Telecoms occupations Table 7: Growth of IT & Telecoms professional roles by occupation, 2001-2007 SOC Description2001 employees2007 employees% growth 1136 ICT Managers200,000286,00043% 2131 IT Strategy & Planning126,000140,00011% 2132 Software Professionals316,000317,0001% 3131 IT Operations Technicians121,000125,0003% 3132 IT User Support69,00048,000-30% 4136 Database Assistants & Clerks96,00060,000-38% 5242 Telecoms Engineers58,00039,000-33% 5243 Line Repairers and Cable Jointers14,00017,00027% 5245 Computer Engineers46,00037,000-20% Total1,047,0001,069,0002% Source: ONS LFS Jan-March 2007 (Note: figures may not add up due to rounding)

8. 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.

9. 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.

10. 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.

11. 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.

12. IT & T: Growth dynamics

13. 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 source Number (average p.a. to 2012) % Employed individuals in occupations other than IT or Telecoms70,90050% Individuals joining from education26,80019% Other sources [1] [1] 43,60031% Total141,300100% Source: ‘IT & Telecoms Insights: Employment Forecasts’, e-skills UK/Experian 2008 [1] [1] E.g. people entering or re-entering the workforce after a career break, after early retirement or from unemployment.

14. 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)

15. 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.

16. Skills gaps by job role

17. 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 & lower16%0%-16% Professional27%5%-21% Senior professional38%35%-3% Lead professional19%60%+41% Total100% Source:’ IT & Telecoms Insights: Employer Skills Needs Survey’, e-skills UK 2008

18. 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.

19. Technology Counts Students and education

20. 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

21. Higher Education 2

22. 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.

23. 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

24. 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 females 2001 Percentage of females 2007 Variance Applicants to Computing discipline degree courses18%15% (2006 data) -3% A-level Computing14%10%-4% A-level ICT (IT user skills)33%37%+4% A-level Applied ICT (IT user skills)n/a42%n/a IT & Telecoms professional occupations22%19%-3% Sources: DfES, JCQ, UCAS

25. 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.

26. 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.

27. Contact and Information - Download the reports and input into our strategic planning, visit www.e-skills.com/insights08 -julie.grady@e-skills.comjulie.grady@e-skills.com -Tel: 02076032136

28. 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 programmesSector attractiveness Revitalise IT AmbITion Changing student attitudes Catalyst Supporting curriculum evolution Professional Development Programme Existing Workforce Future Workforce Age Qualifications Reform Research

29. Technology Counts Next Steps

30. 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.

31. Backup slides

32. 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.

33. 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.

34. Emerging Trends

35. 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.