Fully exploiting technology is the single most important step the UK can take to improve productivity across the economy, according to research released today (28 January 2008) by e-skills UK.
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 unique 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 today (28 January) which marks the start of a nationwide consultation on priorities for action.
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.”
The research reveals that employment in the IT & Telecoms industry is forecast to grow at up to five times the national average. But 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. For example, UK applications to IT-related degrees have fallen by 50% in the last five years.
The IT & Telecoms Insights 2008 research and consultation will underpin employer-led, strategic action plans for the four nations of the UK, to be published later this year. It is a 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.
The research will underpin strategic skills plans for the four nations of the United Kingdom. The plans will be developed by e-skills UK with employers and other partners and set out priorities for collaborative action to make the UK world class in technology skills.
e-skills UK is the employer-led Sector Skills Council for IT and Telecoms, campaigning to make the UK world class in technology skills. It is part of the Skills for Business network of 25 employer-led Sector Skills Councils.
www.e-skills.com
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