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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.

9 comments

Benjamin Rae's picture

Eddy S
What do you mean by leaner and meaner?

C Baker's picture

One of the biggest problems and barriers that exists is the lack of knowledge in government, and that of the previous government regarding technology and computing. I mean Labour were sold an atrocious IT system for the nhs, because nobody that agreed the contract understood the logistics.As a web designer, i could have sold any tinpot computing/IT solution to any council, government department etc as most don't know anything about it. I have learnt basic car mechanics, so i don't get ripped off by mechanics!

Computer programming and computer languages should be taught as stand alone subjects at gcse level. Forget word processing and spreadsheets etc- you have to learn that stuff anyway as part of everyday life or for study.

This government needs to get some top uk computer graduates together and ask them what will be required for technology in future. This must tehen be taught from a young age.

Computing uses maths, science, sociology, and language systems. We must not be left behind, because the people in charge of education don't understand the subject. In fact for once i'd say create a new department- 'technology'.

Luddite's picture

"With 2.6 million unemployed, many tech firms still can’t find quality staff". Who's faults that?.. I along with millions of other's, have more faith in this coalition government to pursue the correct reforms in state-education that's needed, than i ever had in the educationally and economically discredited previous Labour government.

espritdave's picture

If they can't find staff, they aren't looking hard enough.

There's a complete lack of analysis by employers when considering candidates. They see programmer or project manager as a description of the last position that a candidate was doing and assume that they can't do anything else.

In my experience, experienced staff with IT in their background are more than capable of successfully doing a wide of jobs, usually without any additional training. Most IT project managers have strong skills in man management, budget control, business analysis and transformation and many other general business skills.

Often employers aren't best served by agencies who tend to use automated tools to scan CV's for key words and don't take the time to really understand what skills the employer wants as opposed to just trying to fill a position by job title.

Employers - really skilled, experinced staff are out there if you are willing to think outside of your normal box.

paulafarrell's picture

well, having seen a company go through the process of looking for IT graduates, i would say what they are looking for is people with several years' experience at graduate pay. I've been in IT 25 years and I wouldn't have been hired in my first job if I had been interviewed by my last company. They do not want to train or to hire a person for their porential, which is what you would expect for a graduate job. To me it just sounds like PR to justify offshoring or importing a load of foreign workers at low pay. Ps. Why does it have to be graduates? There are lots of older unemployed IT workers who have been castoff in favour of offshoring who just need a little retraining in the right skills.

Benjamin Rae's picture

Espiritdave,
very good point re recruiting agencies. The vast majority are appalling charlatans that provide only a way round employment law.
When large employers pay them large amounts of money to recruit for permanent or fixed term positions I find it astonishing. Most have very little expertise if any

Jason Stamper's picture

The Government yesterday announced that teaching of IT in schools needs reform, and laid out some plans to do just that:
http://bit.ly/tPhsXG

ThomasGC's picture

It doesn't surprise me that there's a lack of enthusiasm for IT roles among graduates and a shortage of more experienced managers. The trend to off-shore IT shops (e.g. India) in the past weveral years has left many UK IT technologists with little to do but manage overseas staff. This may suit some who see management as the next step in their career, but it is not what many IT practitioners want. Strange as it may seem, IT techies are drawn to the field by the technical challenges not the prospect of managing remote IT sweatshops.

Eddy S's picture

the UK needs lower tax environment, reduce burden of govt red tape in setting up companies and getting ideas started.

it was sad to see twitter goto ireland recently the other thing is that banks were big investors in IT but they are cutting back investment too.

the best place now is the mobile app space but again indian engineers are really ahead of the curve - you can recruit a team tomorrow - just google it.

we really need to get leaner and meaner as a country and perhaps the west in general - the old ways will no longer work and will only lead to long term decline.

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