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    IT skills demand not dented by recession

The latest e-skills UK report finds IT staff less likely to be subject to cuts, but skills shortages still remain.

By Miya Knights, 23 Jun 2009 at 08:11

IT worker

IT and telecoms staff have escaped the biggest headcount cuts during the economic downturn according to the latest Sector Skills Council for Business and Information Technology (IT) report.

The E-skills UK report interviewed 2,000 key business decision makers during the first quarter of 2009 and found that technologists were faring comparatively well in within businesses.

The report found almost one quarter of firms anticipated a decrease in their overall headcount over the coming year. But around nine out of ten firms forecast the number of IT and telecoms staff they employed would remain unchanged.

In fact, it said: “Skills (both ICT and generic) appear to be relatively low down on the list of concerns for UK businesses at present… [as opposed to] the strength of the pound, the cost of supplies, legislative changes, the availability of credit and levels of consumer demand.”

Moreover, around two fifths of firms actually recruited staff during the final quarter of 2008, and almost one quarter of these had been seeking to fill IT and telecoms positions.

But IT-related skills shortages were also reported by almost one quarter of firms with IT and telecoms staff, while around one in six firms considered the IT user skills of other staff to be at a level below that needed of them.

Mismatches between the skills held by IT staff and those needed of them occurred in the areas of information management and security, business process and change management, and project and supplier management.

Added to this, around one in six IT and telecoms recruiters said they were experiencing difficulties recruiting staff with the right skills, qualifications or experience.

And, while business and leadership skills were also seen as lacking among IT candidates, database and spreadsheet skills were also called out as in short supply within general candidates’ IT user capabilities.

As a result, virtually all those surveyed said spending on training for IT and telecoms professionals would increase, or at least stay the same over the coming year. And IT outsourcing and contractor hire were areas of focus for increased investment.

However, the report did say that one fifth of companies anticipated a decrease in bonuses and benefits for IT staff over the year, while a similar number expected the budget for recruitment and salaries to diminish.

Peter Hounsome of e-skills UK told IT PRO: "IT appears as if it doesn't look as bleak in the IT sector as what we might have been expecting from the reports of job cuts and general perceptions in the media. But there is a concern that, if the downturn continues, there maybe cuts to education and training. We have seen reductions in spending in these areas before and there is a danger that further cuts will effectively leave skills gaps in companies that mean their workforce is not prepared for potential upturn."

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