Home > News > January 2008 > 30 January 2008

e-skills UK publishes new research into technology and skills

Fully exploiting technology is the single most important step the UK can take to improve productivity across the economy, according to research released by e-skills UK.

e-skills UK, the sector skills council for IT and telecoms, says the results could generate an additional £35 billion for the UK economy over the next decade, but only if we take urgent action to improve our skills base, drive the business adoption of technology – particularly among smaller firms – and foster technology-related innovation.

The research 'IT & Telecoms Insights 2008' provides a view of the key trends, opportunities and challenges facing the UK over the next ten years, and their implications for skills. The findings are being presented to employers and John Denham, MP, the Secretary of State for Innovation, Universities and Skills at an event on 28th January.

Karen Price, CEO of e-skills UK said: "The research evidence is unequivocal: in today's increasingly fast moving global business environment, IT & Telecoms provides the engine of future growth and the key to increasing productivity and competitiveness.

"Half of Europe's productivity gains in recent years can be attributed to investments in IT. IT & Telecoms already contributes £51.9 billion to the UK economy every year - 5% of the total UK economy – and provides jobs for one in twenty of the UK's workforce.

"Technology enables UK businesses to secure new markets, improve productivity and performance and attract high value-added business and investment to the UK.

"To safeguard the long term success of the UK we must maintain the strength of our thriving IT & Telecoms sector and world leading IT-enabled sectors such as financial services and biotechnology. We cannot achieve this without widespread investment in skills."

Paul Coby, CIO, British Airways and chair of the e-skills UK CIO Board, said: "We have great intellectual capital in our IT & Telecoms companies. Our universities are among the world leaders in mathematics, computer science, physics and economics. UK companies have IT departments that lead the world in solving business problems by the smart use of technology. Our lead in these areas will disappear fast unless we radically improve our business and technology skills training at all levels."

According to the research, employment in the IT & Telecoms industry is forecast to grow at up to five times the national average. But e-skills UK says the long term strength and success of the sector is threatened by a dramatic decline in the numbers of young people studying technology and a lack of interest in technology-related careers.

Nick Read, CEO, Vodafone UK said: "An important first step is to change the perception young people have of IT & Telecoms degrees and careers. Secondly, we need to transform technology-related education and capture in the curriculum the excitement that students already have for technologies in their daily lives such as mobile phones and the internet. Thirdly, and most importantly of all, in today's rapidly changing environment we must ensure that the UK's workforce is encouraged and able to develop the world class skills they need at every stage of their career. Our future depends on it."

External link

For further information about the IT & Telecoms Insights report 'Technology Counts', visit: www.e-skills.com/insights08

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