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Going IT alone in the global downturn

19:34 4th September 2009

The global economic landscape has undergone a seismic shift in the last year, with the holy grail of sustained long-term growth exposed as a myth. Unlike previous recessions the implications have been felt in virtually every country and every industry. However, for the IT industry there have been some signs of resilience and - whisper it - even growth, albeit at a slower rate. So what does the IT sector hold in the downturn for organisations and individuals seeking succour?

James Roper, chief executive of IMRG, which tracks e-retail trends, is among those who are sounding a positive note. He argues the nature of the downturn has focused minds on innovation, cost-cutting and low prices - with the technology industry a potential beneficiary. Alluding to e-commerce, Mr Roper argues the recession is "forcing change". For consumers that means hunting down bargains online rather than on the high street. While online shopping has slowed from the 50 per cent year-on-year growth rate sustained for almost two years, it has continued to expand - with IMRG predicting around 15 per cent annual growth this year.

Nor is technology's renaissance restricted to cost-conscious consumers. Companies are increasingly looking to repair their balance sheet through IT innovation, whether it is saving on servers through cloud computing, trimming travel expenses with communication tools or pushing up productivity by keeping staff connected when on the road.

The result is that the UK as a market for IT recruitment continues to evince vital signs and even evidence of rude health. According to an August white paper from recruitment specialists IT Job Board, there remains a shortfall in IT professionals. Its report, entitled The State of the UK's IT Recruitment Market, revealed that while the second quarter of 2009 would record negative growth in IT job vacancies, the long-term picture was positive. The findings echo research from the pre-employment firm, Powercheck, which showed that job offers to IT contractors in the financial services sector doubled between April and May of this year, while project management and testing positions have seen two per cent growth.

Multinationals looking to find economies of scale can use technology to save on expenditure, but IT staff are also perceived as essential to the smaller players. Gerry McLaughlin of IT Contractor.com, says the role of IT staff has become more critical than ever in the information age, acting as a key differentiating factor for companies small and large. "SMEs may only have a few IT staff working for them but they are usually all critical to the business, or being trained to be critical," he explained. "An SME would be in big trouble if they got rid of too many of their IT staff who know the business inside out and how their IT systems interact and enable the business."

The sustained demand for IT skills and jobs is one reason why the salaries have remained competitive. A survey of 14,000 IT professionals worldwide by TechRepublic, suggested the average base salary increased from £45,200 in 2008 to £50,000 in 2009. In addition, almost half - or 46 per cent - said they had received a bonus in the past 12 months.

It is perhaps no surprise then that IT skills are becoming more sought after. Among school leavers, IT jobs have become an attractive career proposition, with a shift in attitudes over the last decade. According to a survey published by the British Computer Society this summer, IT is seen as a 'career of choice' by more and more 16-30 year-olds, with 53 per cent of those qualified in the industry 'confident' about their prospects in the next year and many others considering a career change.

However, there remains work to do by both organisations and individuals looking to translate this interest into filled vacancies and viable economic growth. Karen Price, chief executive at e-skills UK, says more work is needed to tap into this market, noting that the number of UK applicants to computing degrees has fallen by 50 per cent in the last five years. "We should not underestimate the challenge we still face. Every year fewer young people choose to study or embark on a career in IT," she warns.

Nevertheless, whether it is those looking to retrain in the face of the downturn, or fresh graduates and school leavers seeking their first job, it seems the IT sector has plenty to offer in turbulent times. ADNFCR-1667-ID-19347127-ADNFCR