Government hands out tech grants but faces IT skills crisis

With 2.6 million unemployed, many tech firms still can’t find quality staff.

It's been announced that ten British companies are to lead government-backed research, development and demonstration projects that will use talent in the UK's information and communication technology sectors in an attempt to improve productivity and competitiveness in manufacturing and construction. But the news comes amidst growing concern that the technology industry itself is facing a skills crisis.

The Technology Strategy Board and the Engineering and Physical Sciences Research Council will award over £6m of grant funding to the ten collaborative projects. Including match-funding from the businesses taking part, the total value of the R&D will be around £12m.

But numerous technology firms have told the NS that they are struggling to find high quality graduates to fill vacant positions. Others say there is a lack of enthusiasm amongst graduates for careers in technology, despite David Cameron's hopes that initiatives like Tech City or "Silicon Roundabout" in Old Street will act as a hub to spur economic growth.

Loughborough-based clean power systems firm Intelligent Energy employs 250 people in total, spread across the UK, US and India. Its CEO Dr. Henri Winand told us that the firm has a number of vacancies in the UK, but that "There is a lack of applicants for some roles, especially those jobs which require more science and engineering backgrounds, or indeed, people with solid programme management skills."

Such comments are backed up by research published today by IT recruitment firm, Modis International. Its survey of 250 IT decision-makers in the UK found that 27 per cent are struggling to source quality candidates, rising to 44 per cent in larger firms. The survey found that over one third of companies are struggling to implement their own IT strategies because they haven't got the right skills in-house; 23 per cent plan to turn to temporary specialist contractors to plug the gap. "The IT industry is in danger of a skills crisis," said Jim Albert, Modis managing director.

The story was the same with a range of technology companies, with only a few saying that they have been able to find graduates that meet expectations, or even show any enthusiasm for technology jobs. Backup Technology's CEO Simon Chappell told the NS it has open positions for graduates, but at one university only five people bothered to turn up to their careers presentation: "Surprising, given job market conditions and the numbers of unemployed graduates and young people," he noted.

The Government has launched various apprenticeship programmes and growth and innovation schemes such as "Silicon Roundabout" and it's offered some tax breaks to tech entrepreneurs and investors. Yet it seems, from the majority of technology firms we spoke to, that these initiatives are not yet paying off in terms of attracting the right kind of candidates into the technology industry.

Jason Stamper is NS technology correspondent and editor of Computer Business Review: read the full report at www.cbronline.com.

Jason Stamper is editor of Computer Business Review

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Work with us: Wellcome Scholarship at the New Statesman

Be one of our 2016 science interns.

Britain needs more great science writers – particularly from backgrounds which have been traditionally under-represented in the media.

To address this, the New Statesman and Wellcome Trust, in partnership with Creative Access, have come together to offer annual placements to student or graduates from an ethnic minority background*.

The final 2016 placement will take place this Autumn/Winter (the exact date is flexible) and will last for four weeks.

Over the course of the placement, the successful applicants will:

  • Work alongside the New Statesman web and magazine team, learning about the editorial and production process, and how articles are conceived, written, edited and laid out;
  • Undertake a data-driven journalism research project on a scientific topic, which will be published on the New Statesman website
  • Visit Parliament and learn about how science-based legislation is developed and debated in the select committee system
  • Have an opportunity to interview a leading scientist or policy-maker
  • Write a regular bylined science blog on the New Statesman website
  • Receive regular feedback and editing from the editorial team
  • Meet journalists at other titles in the sector (previous Wellcome Scholars have met writers for the Atlantic, and presenters for the BBC)

Over the course of the placement, you will be paid London living wage.

To apply for the placement, follow the steps below and apply direct to the New Statesman. 

Please write an 800-word blogpost on a recent or upcoming scientific development which you feel has the potential to change lives significantly, explaining clearly and concisely what stage the research is at, and how it is likely to proceed. It should be written as if for the NS audience - interested, intelligent laypeople.

Please also write up to 200 words on why you are right for this placement and what you would hope to get out of it. You don't need to send a CV.

Please only use Word files, or paste your text into the body of an email. 

Send your application by email to Helen Lewis (Helen @ newstatesman co uk) with the subject line “Wellcome Scholarship 2016”. 

Applications close on 30 September 2016. Interviews will take place soon after.

This is a positive action scheme under the Race Relations Act.