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Value of IT 'finally appreciated' by UK businesses
IT News |
26/08/2010
The majority of businesses now see information and communications technology (ICT) as being too vital to their operations to cut, an industry expert has claimed.
Gerry McLaughlin, in-house expert at ITContractor.com, said there has been "a sea change" in attitudes in recent years, with companies placing a greater emphasis on technology and IT support than ever before.
"In previous downturns IT was seen as a cost and, as with the marketing budget, it was easy to cut. This was what happened in the downturns of the early nineties and early noughties," he stated.
"However, this time round IT was seen as both a cost-cutting enabler and as too crucial to the business."
Mr McLaughlin said that, in the new information age, access to business information is seen as "the biggest differentiator" and companies did not want to come out of recession a couple of years behind their rivals in terms of the software components of their products and services.
He claimed that this was true even of the financial institutions and banks which were seemingly worst hit by the downturn.
Rather than reduce their IT headcounts, the banks cut rates across the board for IT contractors in order to keep most of them on, the expert explained.
"This is all great news for those that work in the industry, especially for IT contractors, as it has suddenly made the industry far less risky."
Professionals working in the industry have also been buoyed by the latest quarterly review of the ICT Labour Market from e-skills UK, which points to above average levels of business confidence, fewer company liquidations, a fall in the sector trade deficit and an increase in IT spending.
While overall demand for skills in the UK fell two per cent during first quarter of 2010, demand for ICT staff rose by five per cent to approximately 86,000 positions.
Increased demand was witnessed within both the permanent (four per cent) and contract markets (ten per cent) and was focused primarily within London and the south of England.
Posted by John Lynes
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