IT market reportQuarter 1 2011

Compiled & designed by Neil Hulse, Computer People

Contents

Comment A word from the Managing Director 3

Economic outlook Headline market indicators 4 UK outlook 5 Inflation and the labour market 6 The recession - analysis 7

SourcTheITNationRecru

Oil crisis aftermath 8 CEBR predictions for 2011 9

Regional metrics North East & North West 10 Yorkshire, Midlands, 11 East & South East 12 London & South West 13 Wales & Scotland 14 Northern Ireland 16 Table 1 - Labour market statistics 17 Market indicators UK unemployment 18 Vacancies & redundancies 20 Perm market & role analysis 21 Agency Workers Regulations 22 The IT market IT in finance sector 23 Broadband strategies 24 Demand for IT staff 25 How to find new IT recruits 27 IT news 28

es Computer Weekly | The Recruiter | The Times | Financial Times | Resourcing | Computing.co.uk | ITcontractor.com | jobboard.co.uk | ITjobswatch.co.uk | Salary Services | The Skills Market Report on Jobs | BBC Business | Bank of England | CIPD | al Statistics.gov | Business7 | Office of National Statistics | Reuters | Centre for economics & business research (CEBR) | The itment & Employment Confederation (REC) | E-Skills | UK Bank of Scotland | CWjobs | British Chambers of Commerce

Marketplace IT news IT market Regional Economy Comment

A word from the Managing Director…

2011 – The return of the candidate-driven market

Jim Albert Jim Albert is the IT & Engineering Managing Director, for Adecco in the UK and Ireland. Based in London, his responsibilities include the Spring Technology, Computer People, Modis International, Roevin, and Glotel brands, operating in the UK and throughout Europe. Prior to this role, Jim was the MD at Modis International from 2007-2010, after running the global IT consultancy Idea Integration, based in the United States. Earlier in his career, he was one of the original members of AT&T’s global outsourcing division. An electrical engineer by education, Jim worked at Bell Labs and in other technical and sales positions within the IT business segments of AT&T.

In the past month the market has changed to one where top candidates are seeing multiple offers, counter offers, and significant raises. This is a clear signal of a shift in hiring, and requires a different approach by hiring managers. In short – here is a list of “to do’s”:

- Accelerate the pace of the interview/offer process. Good candidates are gone very quickly now. If you take two weeks, as is common based on the last couple of years’ economy, most candidates will not be around anymore. - Consider how to retain your current staff, as many are likely to be looking and being approached. - For contractors, consider longer term deals to lock them in, as many are using breaks or renewal points to find new roles.

IT demands ‘business all-rounders’ The days have gone when an IT professional could excel in their role by solely being a master of the technical side of their job. The future for the IT professional is survival of the fittest: those who embrace broader business skills have access to greater and more exciting opportunities to lead organisational change than ever before, while those that don’t risk being pigeon-holed as back office implementers. The message coming out of our conversations with employers is loud and clear: they want much more than technical and project management expertise. In short, the future IT professional needs to be a master of many disciplines – truly a business all-rounder.

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Marketplace IT news IT market Regional Economy

Comment

Headline market indicators

- The UK economy is in recovery despite quarter four GDP decline

- Unemployment is expected to increase over the next year but at a slower rate

- The UK’s economy is set for an annual GDP growth of 1.3%

- Q4 unemployment rate was 7.9% and there were 2.5m unemployed people

- Annual growth in average earnings was 3.6% in the private sector and 4.4% in

the public sector

Year ends on a dip for UK economy Gross Domestic Product decreased by 0.5% in the fourth quarter of 2010, compared with an increase of 0.7% in the previous quarter. The GDP estimate was significantly affected by the bad weather in December. The decline in the fourth quarter is due to decreases in two of the component aggregate series, namely services and construction. Business services and finance decreased by 0.7%, compared with zero growth in the previous quarter. Computer services contributed most to the decline in this quarter. UK GDP growth, quarter on quarter

Source: ONS

Service sector growth dampened Growth in Britain’s service sector slowed sharply in February, a survey showed, suggesting the economic recovery may be too fragile for an early interest rate rise. February’s headline services PMI index fell to 52.6 from January’s eight-month high of 54.5, a peak that followed a contractionary reading in December blamed on snow. The index, compiled by Markit/CIPS, had been expected to fall to 53.5.

4

4

“ A weakening jobs market, muted economic growth, ultra-tight fiscal policy, plus well above target price inflation and the greater prospect of an interest rate hike sometime later this year provide all the ingredients for a ‘perfect storm’ to hit the UK economy ”

Dr John Philpott, CIPD

Housing market ‘treading water’ UK house prices registered an unexpected modest bounce in February, according to a closely watched index, leaving overall prices slightly below where they stood one year ago. The Nationwide House Price Index for February rose 0.3% compared with a decline of 0.1% in January, leading to a picture of a housing market that is treading water, rather than falling, as sellers retreat from the market. Increase in mortgage approvals British mortgage approvals picked up more than expected in January and mortgage lending rose to its highest in almost a year, Bank of England figures showed. However, consumer credit contracted at its fastest pace in over a year and money supply growth remained weak, suggesting overall credit conditions remained far from normal at a time of economic uncertainty. Manufacturing growth remains at record high British manufacturing growth held at a record level in February and factory costs stayed near January’s survey high, suggesting price pressures are continuing to build. The Markit/CIPS headline manufacturing Purchasing Managers’ Index (PMI) stood at 61.5 in February, unchanged from January. That was the highest since the survey began in 1992 and above the consensus forecast of 61. Inflation will rise sharply says Mervyn King The Governor of the Bank of England, Mervyn King, has said inflation will rise sharply in the first half of this year before falling back next year. But he said there were "large risks" that inflation could overshoot or undershoot the Bank's 2% target. He reiterated his belief that external factors, such as rising food and energy prices, are the main cause of rising prices in the UK. Mr King said growth would be weaker than the Bank forecast in November. In the Bank's inflation report, the governor said that once cost pressures from high commodity prices subside, "CPI inflation will then fall back. But the extent to which it will do so is uncertain, and there are large risks in both directions."

5

Inflation 2000-2010 (Percentage change over 12 months)

Source: ONS

Official figures showed that inflation, as measured by the Consumer Price Index (CPI), rose to 4% in January from 3% in December. Measured by the Retail Price Index (RPI), which includes mortgage interest payments, it rose to 5.1% from 4.8%. Mr King was forced to write a letter to the Chancellor, George Osborne, to explain why CPI inflation was twice the Bank's target rate. "Only time will tell. The judgements are difficult", he concluded. Labour market still showing signs of fragility The labour market showed some weakness in quarter four 2010, with employment levels falling by 68,000 jobs. Between quarter four 2009 to quarter four 2010, total employment rose by 0.8% (383,000). The most recent quarter, however, saw total employment fall by 0.2% (68,000) compared to the previous three months. This may reflect changing situations for individuals within the labour market. Also, comparing quarter four 2010 with quarter four 2009:

- Full-time employment fell by less than 0.1% (5,000)

- Part-time employment grew by 2.9% (224,000)

- Self-employment grew by 2.4% (92,000)

- Employees grew by 0.4% (110,000)

Over the six quarters of economic contraction from quarter one 2008, total employment fell by 600,000. In the 1980s recession, the final quarter of economic contraction saw employment levels 619,000 lower than pre-recession level. At the end of the 1990s recession, employment was 910,000 lower than it was prior to the recession.

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The economy remains below the level of output recorded before the start of the recession. GDP has recovered about a third of the output lost during the recession. In the past two recessions it took just over three years for output to reach pre-recession level.

The UK economy over the past 3 recessions

GDP fell 4.6% in the 1980s recession, by 2.5% in the 1990s recession and by 6.4% in the 2000s recession.

Exceptional weather conditions contributed to fall in GDP GDP fell by 0.5% in quarter four 2010. This follows four consecutive quarters of economic growth between quarter three 2009 and quarter three 2010. The main areas contributing to the decrease in the latest quarter are:

• Production industries output was up 0.9% (contributing 0.1% to GDP growth)

• Construction output decreased by 3.3% (contributing -0.2%)

• Total services output was down 0.5% (contributing -0.4%)

Although quarter four growth was negative, the figure was influenced substantially by exceptional weather conditions. These are estimated to have accounted for 0.5% so that, in underlying terms, growth was broadly flat.

7

Oil crisis could put us back into recession Britain could be plunged back into recession by soaring oil prices, experts have warned. Crude leapt to almost $120 a barrel, its highest for nearly three years, on the back of the Libyan crisis. Bankers at stockbroker Nomura said it could hit an incredible $220. Petrol industry chiefs said motorists face hikes of TEN PENCE per litre at the pump - given the spiralling cost of crude and the Chancellor's upcoming fuel duty hike. British Gas said it could push up bills while soft drink giant Britvic revealed the cost of plastic used in bottles went up 20% in the past month. Asda said families' disposable income in January was a record £9 a week lower than a year ago. Gerard Lyons, chief economist at Standard Chartered, warned: "Britain is vulnerable. Could we go back into recession? Yes, absolutely." Oil fell back to $111.03 late last night on signs the Saudis will pump more oil to feed global demand. The AA said petrol prices hit a new record - with unleaded averaging 129.05p per litre and diesel 134.41p. CEBR predictions for 2011… - Yet another Eurozone crisis in the spring if not before, when Spain and Italy have to refinance in aggregate over €400 billion of bonds. The euro might break up at this point, though European politicians are normally able to respond to a crisis and its suspected that the cause will be the failure of most of the countries to take the tough medicine necessary to make their economies competitive over the longer term. We give it only a one in five chance of surviving in its present form for ten years. If the euro doesn’t break up, this could be the year when it weakens substantially towards parity with the dollar. - Slower economic growth. As the boost from the end of de-stocking comes to an end, countries will have to rely on the fundamentals - in the fast growing Eastern economies, growth will have to slow because of inflationary fears. For the UK, all this will combine with the effects of fiscal retrenchment as the government tries to bring borrowing under control. A double dip for the world economy is not likely because of the strength of the emerging economies. But it is well within the bounds of possibility for the UK.

8

- Germany to be the Western economic superstar again. German performance, in some sense subsidised by the euro which has the same effect for the German economy that the cheap renminbi policy has for the Chinese economy, is likely to continue to be stunning. With the costs of unification gradually absorbed and a highly competitive exchange rate, Germany is setting the pace in Europe. One of the interesting elements of Germany’s recent economic success has been the role of immigrants – primarily Turks but increasingly from other countries – who now seem to be boosting the German economy in the same way that their equivalents have boosted the British economy in the past 20 years. - A serious economic crisis in Japan. Japanese debt is now 200% of GDP and if it grows will need foreign financing which may be difficult to achieve. It is likely that the government will have to embark on fiscal retrenchment. Meanwhile, growth in the main Asian export markets will slow and the aging population will force the government to raise the retirement age again, this time to 75! - Inflation to be a bit lower than is conventionally expected. The end of the inventory turnaround and the prospect of more normal wheat and cotton growing weather should bring prices of commodities down. While interest rates –raised in China again on Christmas Day – should continue to rise in the fast growing Eastern economies, they could remain flat in the US, the Eurozone and the UK. - Another tough year for consumers. The VAT rise, combined with high commodity prices at the beginning of the year and depressed average earnings and falling employment mean that disposable income will fall. Whereas last year the fall was offset by consumers running down savings and by spending less on utility bills (at least until the cold December), this year there is not a lot of cushion left. So expect consumer spending to be flat at best and even that would be a result. - Online retailing had a tremendous year in 2010 and has really become a dominant driver of consumer spending. Two new technologies which we expect to start to grab attention in 2011 are cloud computing, which in effect is renting access to your server, and ‘telepresence’, the use of HD TV to provide teleconferencing that is such high quality that it seems as if the other people are in the same room as you. - Banks in the UK to start lending again. UK banks have done a lot to get their capital bases restored after the problems of 2007/08. We expect them to lend more competitively in 2011 – either because they can afford to or because the government gets fed up with their monopolistic attitudes and start to adopt more aggressive policies to them.

- A year of two halves for the UK housing market. In the first half of the year, we expect a weak UK housing market and prices could even edge down, on the back of weak disposable income. But in the second half of the year, lending could become cheaper as competition to provide mortgages heats up and this should turn the market round. Prices may be much the same at the end of the year as at the beginning.

9

Goldman Sachs

Average house

Gwent had the UK’s lowest job

UK’s lowest average gross pay (£

Marketplace IT news IT market Regional

Economy Comment

North E- Easington- The Northperson)….th- The region£153k, whic- Up to 800 MiddlesbrouIndustries (SProducts. - NEPIC, thhas only beadded value North W- Liverpool h- The averaon a year a- Investmentechnology - A numberapprenticesto announcdoubling the

800 new jobs to be created in Middlesbrough

Hull had the country’s highest unemployment (14%) invests £43m in NW based company

City jobs up 142% on Q4 2010

Nottingham has UK’s lowest employment rate (55%) House prices are up 5.4% on Q4 2010

East Anglian company makes £33m acquisition

price stands at £236k

density (0.49 jobs pp)

Virgin Money to recruit 300 new staff

441 per week)

80% of commuters looking to move closer to home

ast in County Durham had the second lowest employment rate in the UK (57%) East had the lowest job density (jobs per head) in the UK (0.69 jobs per e worst district being Chester-Le-Street (0.45) is the cheapest place to buy a house in the UK – the average price being h is up 2.1% on a year ago. jobs could be created in the UK’s steel industry after the takeover of a gh steel works by Thailand’s biggest steelmaker. Sahaviriya Steel SI) paid India’s Tata Steel £291m ($469) to take over Teeside Cast

e regional cluster for the chemical and process industries in the North East, en in existence for six years but has now contributed more than £1bn of to the regional economy.

est ad the region’s highest unemployment rate (12%) ge house price is £163k, which is up 2% on the previous quarter and 3.6% go. t bank Goldman Sachs has taken a minority stake in a Warrington-based business AppSense after investing $70m (£43m). of major employers in the North West region have pledged to take on more during National Apprentice Week. Wirral Council is the latest organisation e its support for the creation of apprenticeship roles by spending £1m on number of apprenticeships provided with local employers.

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Yorkshire & Humberside - Ryedale in North Yorkshire had 86% employment rate – the joint highest in the UK. - Eden in Cumbria had the lowest unemployment rate (3.3%) - Kingston Upon Hull had the UK’s highest unemployment rate…14% - House prices have risen 4.4% in the past year to reach an average of £166k - Diagnostics specialist Avacta Group has signed an exclusive commercial agreement with Pall Corporation to develop and market its Optim analysis device in North America. As part of the agreement, US-based Pall Corporation will also work with York-based Avacta to develop and market other advanced technologies and analytical services aimed at the life sciences market. East Midlands - Nottingham had the UK’s lowest employment rate…just 55% - The average house price is £169k, which is an increase of 4.7% on Q1 2010

- Nottingham is the 10th biggest contributor to the UK economy, research has found. The city generated £25,835 per head, 1.2% up on the previous 12 months. This was £1,491 above the UK average of £21,103. Derby was placed 12th in the list, generating £22,594 per head (up 0.5%); Leicester was 21st with £20,438 (up 0.6%) - A firm of consulting engineers, which has an office in Hull, has been appointed by leading online grocer Ocado Group Plc to provide civil and structural engineering

services for a new £210m distribution centre in Dordon, North Warwickshire.

Waldeck, which also has offices in Peterborough, Sleaford, Lincoln, Nottingham and Northampton, is responsible for the structural design of the Customer Fulfilment Centre (CFC), Ocado's second, and the infrastructure on the 35-acre site on the Birch Coppice Business Park.

West Midlands - Sandwell had the joint 3rd highest unemployment rate (13%) - House prices have increased by 5.4% on the previous quarter, and up 4.4% on a year ago to reach an average of £183k - Plans to transform part of Coventry city centre with an exciting new multi-million-pound superstore, retail and leisure development are being unveiled. The site comprises approximately 3.5 acres with the proposed scheme producing a completed development value of around £50 million. Midlands-based Barberry Developments has completed the purchase of the 200,000 sq ft former Royal Mail Sorting Centre and adjoining properties, including 50 Bishop Street, and is planning a large and comprehensive retail-led scheme on the site. The development will be known as Bishop Gate. - Browne Jacobson has advised Staffordshire County Council on one of the country's first Public Sector Networks (PSN).

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The network, which is being delivered in partnership with KCOM, will be accessed by around 200 council sites and 400 schools, including all Borough and District councils in Staffordshire. South Staffordshire Health is already committed in principle and discussions are taking place with wider partners such as Staffordshire Police and Staffordshire Fire and Rescue service. The initial £23m contract, which is for five years with the option to extend for a further five years, will involve sharing services including telephones, a County-wide computer network, security services, contact centre technology and mobile phones. East - The area with the highest rate of male employment was East Cambridgeshire (91%) - House prices in the region have risen by a whopping 9.4% over the past year to become the country’s fourth-highest region with an average of £214k. - Alpha Biologics at Babraham has been acquired along with its Malaysian parent by California company Viropro in an all-share deal valued at $21 million - just under £13m. - Global engineering and project management firm, AMEC, has made a £33m acquisition north of the Border. The East of England company has acquired qedi, a market-leading oil & gas completions and commissioning services company based in Aberdeen. Multi million pound funding from the Government has lit the touchpaper to a world-leading data hub in Cambridge that could revolutionise bioscience research and lead to major healthcare advances. A team of highly-skilled staff would be responsible for cataloguing and filing the data and providing user support, and it is predicted that the project would create around 100 hi tech jobs. South East - Only London saw a greater increase in house prices over the past year (12.1%), which now stands at an average of £291k.

- Tourism is worth more than £400 million to Canterbury’s economy. New research has revealed the industry has grown by 13% in three years around the city. The Cambridge Model survey of tourism, commissioned by Visit Kent and based on statistics gathered in 2009, has also shown a marked rise in Swale.

Across Kent, the economy has grown by 10% between 2006 and 2009, with an eight% increase in the number of visitors and a 7% increase in the number of jobs. An estimated 63,000 jobs help generate £3.2 billion to Kent’s economy.

- A recent survey of Brighton & Hove businesses has indicated a bright-looking future for jobs in the city by the sea. According to a December 2010 to January 2011 survey by BrightonandHoveJobs.com, more than a third (36%) of employers plan to create new jobs and take on new staff over the next 12 months, while 17% said they expected higher than average growth which could lead to new jobs. A mere 4.3% said they were looking to reduce staffing.

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A parallel survey of employees also showed an optimistic outlook, with a swing towards people improving their work-life balance by finding local jobs instead of commuting to London, despite the capital's higher pay levels. Indeed, more than 80% of commuter respondents were seeking a shorter and easier journey. This trend may be influenced by the recent rise in train fares, although 25% of respondents believed the Brighton & Hove work environment is of a better quality. Among the respondents who did not yet have a job in Brighton & Hove, 75% were keen to find one in the next 12 months. London - London is the region with the highest jobs density at 0.90 jobs per resident aged from 16 to 64 compared to North East which has a jobs density of 0.69. The four local areas with the highest jobs densities are all in London, being the City of London (36.58), Westminster (3.34), Camden (1.76) and Islington (1.42). - In contrast, Lewisham had a job density of just 0.41 - Twenty two areas had a median gross weekly pay over £600, twelve of which were over £650. Of those over £650, nine were in London the highest of which were – the City of London (£928.20), Tower Hamlets (£816.80) and Westminster (£698.80). - The average house price in London was £430,680 in February (up 4.2% on January), and up 12% on Q1 2010.

- The number of new City jobs rose by 142% in January on December, according to the latest Morgan McKinley London Employment Monitor. The Monitor reveals that compared to January 2010, job numbers rose by 28% this January. The number of new candidates also rose by 76% month-on-month in January 2011. - The Foreign Office is planning to axe around 450 jobs from embassies and consulates around the world, including posts helping UK

citizens and supporting diplomats, union leaders have said.

The average IT salary in London is £52k; and the average daily rate is £475

Internal briefings to staff said the cuts were part of measures to save up to £30 million a year because of reductions in Government spending, said the Public and Commercial Services union. Officials said the move was "short sighted" particularly at a time when staff have played a key role in providing assistance to UK citizens in countries such as Egypt, Tunisia and Libya. South West - The South West had the country’s second highest job density (0.82 jobs per head) - The three areas with the lowest median gross weekly pay were Caradon in Cornwall (£349.60), West Devon (£351.40) and Torridge in Devon (£352.40). - The region now stands as the third costliest place to buy a house, with an average of £236k – an increase of 8.6% on Q1 2010. - Progress on the building of a new ferry terminal in Penzance may have stalled for now but construction work of a different kind has been moving forward apace at the Penwith College site. It's part of an upgrade that has seen £32 million invested in totally reconfiguring the site. Of this, £24 million is being spent on higher education facilities and £8 million on the college's further education provision.

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Wales - Gwent had the UK’s second highest unemployment rate at 14%. It also has the lowest job density in Wales (0.49). - The average house price in Wales stands at £160k (the 2nd lowest in the UK), despite an increase of 2.6% over the past year. - A Swansea company is to create more than 300 new jobs in a rapid expansion drive. Nationwide Energy Services helps people to claim government grants for subsidised loft and cavity wall insulation, and is now expanding its services. The contact centre company employs 280 staff at its head- quarters at Swansea Enterprise Park, but is looking to expand that to 640 during 2011. It has brought in telecoms provider Virgin Media Business to provide the infrastructure needed to underpin its rapid expansion. Scotland - Shetland Islands had 86% employment rate – the joint highest in the UK - Aberdeen had the 3rd lowest unemployment rate (3.4%) - The average house price in Scotland is £163k, which is an increase of 6.6% on Q4 2010……the third biggest increase in the UK.

Timeline 1995 – Virgin Direct opens, with £42m invested in first month 1997 - £1bn funds invested by 200,000 customers 1999 – company wins service excellence award 2002 – Virgin credit card launched 2007 – named Britain’s fastest growing private company in the Sunday Times Profit Track 100

Group plans to recruit 300 people for its Scottish base Virgin Money is to begin recruiting for 300 new staff in Scotland after agreeing rental terms for a new Edinburgh headquarters. The group said its lease of 28 St Andrew Square is the largest city centre commercial property deal in Edinburgh in two years. The financial services arm of Sir Richard Branson's Virgin Group already has an Edinburgh office having agreed in 2009 to take the entire top floor of the Venue Studios at 15-21 Calton Road. Virgin Money currently employs 85 people at that office. The group confirmed last September it planned to base its new operations centre in Edinburgh which it said would create 200 jobs initially. However the group said it now plans to hire around 300 staff to beef up administration teams as it prepares to launch a full-scale banking proposition in late 2011 or 2012. Easyjet to create 60 jobs in Scotland The airline is launching four new routes from Scotland, including a new direct service from Aberdeen to London Gatwick. Three additional services - to Athens in Greece, Tenerife and Grenoble, France - are starting at Edinburgh Airport in September. The move is expected to increase passenger capacity to and from Scotland to three million a year.

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Atos Origin wins £18.5m FirstGroup contract Atos Origin has won a five-year contract with FirstGroup to improve IT infrastructure in North America. The $30 million (£18.5m) contract involves Atos consolidating First's data centres which have grown through recent acquisitions. Atos Origin in Scotland also provides a number of services to First including rail operating systems, real-time management and deployment of vehicles and staff as well as ticketing solutions and customer information systems. Scottish government pledges £10million to provide incentives to SMEs to hire new staff The Scottish government has launched a new £10 million incentive fund for small businesses it hopes will help up to 5,000 people back into work. Finance minister John Swinney said the money would be used to encourage small and medium-sized companies to take staff on, assist in hiring new employees and encourage Scotland's exporting companies. Under the plans outlined, £5 million will be spent on an Employer Recruitment Incentive run by Skills Development Scotland. Employers will be offered £1,000 for each recruit to encourage job creation to over-18's unemployed for six months or more or already participating in Skills Development Scotland's Training for Work programme. A further £2.5 million has been pledged for Small Business Employment Support to assist companies with less than 50 employees with £1,000 subsidy to meet the cost of recruitment and payroll. And another £2.5 million will go towards a new Export Support initiative to help around 100 companies to exploit opportunities in new markets. John Rendall confident of HSBC expanding Scots market share

“ We are winning the kind of customers we set out to win, and keeping them ”

HSBC's Scotland chief executive insisted the bank is continuing to make inroads into the Scottish market despite customers remaining loyal to their lender through the financial crisis. John Rendall said the banking crisis did not appear to have made businesses much more likely to change banks, with only 5% a year switching. "We are winning the kind of customers we set out to win, and keeping them," he said. "But we have learned that the end to end process can be longer than we might have thought." Orkney-born Rendall was appointed as HSBC's Scotland boss in June 2009, tasked with taking advantage of the turmoil among competitors to grow the bank's relatively small presence north of the Border.

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Northern Ireland - The highest job density per person outside of London was Belfast (1.33 jobs pp) - Conversely, Carrickfergus had the lowest job density (0.38) - Northern Ireland had the lowest average gross pay in the UK (£441/week) - House prices in Northern Ireland fell by 1.6% on Q4 2010, but plummeted by nearly 21% over the past year – the only place in the UK to do so. The average price now stands at £161k.

Ulster Bank Across the Republic of Ireland and Northern Ireland, Ulster Bank employs over 6,000 people. They meet the needs of around 1.9 million personal and business customers through 295 branches and business banking offices. Their business is formed of two distinct divisions:

- Ulster Bank Retail Markets - Ulster Bank Corporate Markets

Timeline 1836 – Ulster Bank is founded 1917 – Ulster Bank becomes a wholly owned subsidiary of what is now known as NatWest 2000 – The Royal Bank of Scotland Group (RBS) takes over NatWest. Ulster Bank becomes a wholly owned subsidiary of RBS 2004 – Ulster Bank Group acquires First Active, a leading mortgage provider.

- County Antrim bus builders Wrightbus have announced a major new order from the UK for 334 new buses. The contract with bus operator Arriva is valued at around £55m and consists of 204 double-deck and 130 single-deck buses. Ulster Bank lose £761m in 2010 Ulster Bank has reported operating losses of £761m for 2010 in its annual results bulletin. The Royal Bank of Scotland Group (RBSG) company said "deteriorating" economic conditions across Ireland had impacted their performance. Profits before impairment had increased to £400m; however impairment losses had risen by £512m to £1,161m, resulting in the overall £761m loss. "We continue to take the right steps to manage the recovery of our business," said Ulster Bank CEO Cormac McCarthy. "Against a backdrop of very challenging market conditions, we remain committed to raising deposits, pricing appropriately in the market and managing our cost base." Mr McCarthy added that customer deposit balances have increased by 8% over the year. He said the RBS Group remains "committed" to its business on the island of Ireland. "In 2010, we announced a programme of initiatives that highlights our commitment to the island of Ireland and to our 1.9 million customers," he continued.

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Table 1 - Labour Market S

tatistics

Change v Q4 2009

-7

28

-4

2

-11

41

75

32

40

196

30

8

234

24

258

Change v Q3 2010

-34

-25

6

15

-15

-2

6

-9

5

-54

15

10

-29

5

-24

Economically active

Q4 2010

1,258

3,420

2,630

2,302

2,671

3,009

4,160

4,454

2,707

26,611

1,458

2,704

30,772

841

31,613

Change v Q4 2009

-19

59

-7

-17

-23

36

76

34

45

184

30

-2

213

6

218

Change v Q3 2010

-47

-5

-2

12

-43

-1

7

-4

-12

-96

10

23

-63

-5

-68

Employment

Q4 2010

1,129

3,162

2,386

2,117

2,410

2,810

3,788

4,181

2,542

24,526

1,335

2,488

28,348

773

29,121

Change v Q4 2009

12

-31

3

19

11

5

-1

-1

-6

12

-1

10

21

18

40

Change v Q3 2010

13

-19

8

3

28

-1

-1

-5

17

42

5

-13

34

9

44

Unemployment

Q4 2010

129

258

244

185

261

198

373

273

165

2085

123

216

2424

68

2492

Change v Q4 2009

16

-8

21

31

21

-5

-14

12

-15

58

-10

6

55

-19

36

Change v Q3 2010

33

24

0

5

24

1

12

15

-4

111

-13

-1

97

-4

93

Economically inactive

Q4 2010

452

1103

841

666

847

763

1334

1079

688

7773

492

769

9035

327

9361

North East

North West

Yorkshire

East Midlands

West Midlands

East

London

South East

South West

England

Wales

Scotland

Great Britain

Northern Ireland

United Kingdom

Figures are in thousands and are seasonally adjusted

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Marketplace IT news IT market Regional Economy Comment

- The employment rate was 70.4% and there were 29.09 million employed people.

- The unemployment rate was 7.9% and there were 2.50 million unemployed people.

- The inactivity rate was 23.4% and there were 9.37 million inactive people aged from 16 to 64.

- Total pay (including bonuses) rose by 2.1% on a year earlier.

- Regular pay (excluding bonuses) rose by 2.3% on a year earlier.

Number of people (000's) Rates (%) UK labour force survey indicators Q4 2010 Change v

Q3 2010 Q4 2010 Change v Q3 2010

Number in employment & rate 29,089 -69 70.4 -0.3 Unemployment (aged 16+) 2,498 49 7.9 0.2 Inactivity (working age) 9,369 89 23.4 0.2 Average weekly earnings Q4 2010 average weekly pay Annual growth since Q4 2009 Total pay (inc. bonuses) 455 2.1 Regular pay (exc. Bonuses) 430 2.3

UK unemployment total rises again UK unemployment rose by 44,000 to almost 2.5 million in the three months to the end of December, the Office for National Statistics (ONS) has said. Youth unemployment rose to a fresh record high, with more than one in five 16 to 24-year-olds out of work after a rise of 66,000 to 965,000. The unemployment rate is now 7.9%, with youth unemployment running at 20.5%. The number of people claiming Jobseeker's Allowance also increased, by 2,400 last month to 1.46 million. Prime Minister David Cameron said unemployment, particularly among the young, was "a matter of great regret". But he stressed that it had been a problem for some time. The number of people in part-time work because they could not find a full-time job rose by 44,000 to 1.19 million, another high since records began in 1992.

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Table 2 Changes in unemployment levels Who Q4 2008 Q4 2010 Change

(%)

All 2,005,000 2,492,000 24.3 Men 1,205,000 1,464,000 21.5 Women 800,000 1,028,000 28.5 Under 24 816,000 965,000 18.3 25-49 879,000 1,143,000 30 50-64 292,000 362,000 24 Over 65 17,000 21,000 23.5 For 1 year+ 454,000 833,000 83.5 For 2 years+ 339,000 210,000 61.4

Long-term unemployment also deteriorated, with 17,000 more people out of work for more than a year, to a total of 833,000. Other data from the ONS showed that average earnings rose by 1.8% in the year to December last year, slightly down on the 2.1% growth in the year to November. The figures also showed that unemployment fell in Scotland by 13,000, but rose in England, Wales and Northern Ireland.

Source: ONS There were 40,000 more job vacancies in the three months to January than in the previous three months. This is often seen as an indicator of the health of the economy and whether companies are creating jobs. UK unemployment 1992 - 2010

Source: BBC Business The number of people aged 16 and over who are employed fell by 69,000 on the quarter to reach 29.09 million, the Office for National Statistics (ONS) said. But the number of people unemployed in the UK increased by 49,000 for the three months to November 2010 to reach 2.50 million. The number of people aged 16 and over who are employed fell by 69,000 on the quarter to reach 29.09 million.

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Public sector out-earns the private sector again

Average total pay (including bonuses) in the private sector was £449 per week in November 2010. In the three months to November 2010 total pay in the private sector rose by 1.9% on a year earlier.

The equivalent figures for the public sector were £469 per week, and an increase of 2.4% respectively. Average total pay (including bonuses) was £455 per week in November 2010. In the three months to November 2010 total pay rose by 2.1% on a year earlier, unchanged from the three months to October 2010. Vacancies up nearly 4% on Q3 Redundancies down 19% There were 480,000 job vacancies in the three months to December 2010, up 18,000 from the three months to September 2010 and up 14,000 from a year earlier. The estimates include vacancies for temporary jobs in connection with the 2011 Census, which have been advertised since October 2010. There were 1.8 vacancies per 100 employee jobs in the three months to December 2010, up 0.1 on the previous quarter and on the year.

In the three months to November 2010, 157,000 people had become redundant in the three months before the Labour Force Survey interviews, up 14,000 from the three months to August 2010 but down 25,000 (-19%) from a year earlier. The redundancy rate was 6.3 per 1,000 employees, up 0.5 from the previous quarter but down 1.1 from a year earlier.

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Permanent placements rise at a faster pace Numbers of permanent placements and temporary/contract billings rose at faster rates in January, according to the latest Report on Jobs from the Recruitment & Employment Confederation (REC). The report shows latest increases were the most marked for six and seven months respectively, while recruiters report increased staff appointments reflect a further rise in vacancy levels at employers with overall demand for staff growing at its fastest pace since June 2010.

Meanwhile, the availability of staff to fill permanent jobs remained broadly stable in January, following a quarter of growth, while temporary/contract staff availability continued to improve at a marked pace. Training professionals in demand… Training professionals are increasingly in demand, according to Lynne Hardman, managing director, professional services at Badenoch & Clark. In the latest Badenoch & Clark talent spotlight, Hardman says: “Learning & Development professionals have been increasingly in demand since the beginning of 2011. Opportunities cross both public and private sectors, but the emphasis is tending to be at the specialist and managerial level. Organisations are feeling more confident about the future and are now willing to make these longer-term investments.” …but its bad news for Interim Managers The interim management market experienced an 8% drop in demand over the past six months, according to a snapshot survey of 12,500 interim managers. Despite a fall in activity levels, the average daily pay for interim managers rose from £592 in June to £613 in December. Interim managers working part-time also received a 6% boost in pay, with rates rising from £568 in June to £601 in December. The market decline reverses the 11% upturn in activity recorded in June 2010, and two previous periods of decline recorded from 2008, when the recession was gathering pace.

“ There are still five candidates for every single vacancy ”

Liam Byrne, Shadow Work & Pensions Secretary

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Andy Smith, Adecco Group AWR – ‘need to know’ points

- They will come into force on 1st October 2011. - The key aspect of the Regulations is the requirement that qualifying agency workers receive relevant basic working and employment conditions that are no less favourable than they would have been if hired direct to do the same job. - There is a qualifying period of 12 weeks. - There are going to be anti-avoidance measures introduced. - Employment tribunals will have discretion to make an award of no less than 2 weeks' pay for equal treatment claims and pay between assignments. - The Regulations exclude the genuinely self-employed, those employed on 'managed service contracts'. - The right to equal treatment includes basic pay, some bonuses or other incentive payments and enhancements to holiday rights. - The Regulation also contain some 'day one' entitlements - The Regulations will also introduce improved protection for new and expectant mothers

Adecco warns of ‘lack of awareness’ about AWR The Head of Regulation & Employment at Adecco Group has warned that many employers show “an alarming lack of awareness about the Agency Workers Regulations (AWR)”. Andy Smith says: “Publication of guidance by the government has been delayed by its deliberations over a possible review and is not expected until this spring. But many organisations need to understand the potential impact of the regulations now because they are developing their HR and budget plans for 2011.” Mike Emmott, CIPD public policy adviser, says: “It is important that employers should make their own assessment of how the regulations will affect them, based on an understanding of what they say. “Agency working makes a significant contribution to the UK’s flexible labour market and it would be damaging if employers were to make decisions about their recruitment strategies based on misunderstandings around the scale of the impact the regulations are likely to have on their business, or stories about ‘gold-plating’.” Smith’s and Emmott’s comments come following the publishing of a new guide by the CIPD, in partnership with Adecco, which aims to help employers prepare for the impact of the AWR. The regulations, which come into effect on 1 October 2011, implement an EU directive requiring the basic employment terms and conditions of agency workers after a qualifying period of 12 weeks to be no less favourable than those that would apply if they had been recruited directly.

Marketplace IT news IT market

Regional Economy Comment

IT contractors look to financial services for jobs as public sector cuts bite Confidence amongst IT contractors over their job prospects in financial services has surged over the last 12 months as banks continue to ramp up IT investment post-credit crunch, reveals new research by giant group plc, the contractor services provider. 36.7% of IT contractors think the financial services sector will create the most IT jobs over the next 12 months, up from 22% this time last year. At the same time, confidence in the public sector to create IT jobs has slumped to an all-time low. Just 4.5% of IT contractors expect the public sector to create the most IT jobs in 2011, down from 24.7% in Q4 2009.

Long term joblessness amongst IT contractors (without work for 90 days or more) dropped significantly this year. According to giant group, just 6.5% of IT contractors have been out of work for 90 days or more, compared to over 10% last year. Matthew Brown, Managing Director of giant, comments: “As the economic recovery gathers pace we should see the number of contractors out of work for extended periods fall quite dramatically. Just over 5% of IT contractors were classed as long term jobless before the

collapse of Lehman Brothers, so we are not back to pre-credit crunch levels just yet, but getting closer.” Confidence in the public sector has collapsed since the Comprehensive Spending Review. Just 4.5% of IT contractors expect the most job opportunities to come from the public sector, compared to nearly a quarter (24.7%) last year. Nearly two thirds of techies are not loyal to their work According to the latest survey from The IT Job Board nearly two thirds (59%) of IT pros are not loyal to their work. And when asked, more than half (52%) said they didn’t believe that IT workers tended to be loyal in their employment. The banking and finance sectors were highlighted as being those with the biggest movement of IT workers – standing at 34%. Post recession, a staggering 85% said they plan to ‘jump ship’. And 80% indicated that they will be looking for a new job in 2011. More than half (53%) of those who plan to leave their employment advised it was because they don’t feel valued, and 48% said it was due to poor salary. 58% of those surveyed advised their loyalty would be improved with better corporate communication.

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Government Opens Bidding For £50m Broadband Fund

Local authorities can now bid for a share of the £50 million released by government for broadband investment The British government has released its first installment of the £530 million it pledged for the rollout of superfast broadband. Local public authorities are being invited to bid for a share of the £50 million fund, which is intended to extend Internet access to areas of the country that are not commercially attractive to Internet service providers. More than half of the this investment – £300 million – will come from the TV licence fee, with the remaining £230 million to be provided from the government purse. Around 2 million households will benefit from this investment, according to the review, including some of the most remote areas of the UK.

Culture secretary Jeremy Hunt has already pledged to make the UK the best place for superfast broadband in Europe by 2015, although this will rely heavily on the private sector. BT has promised to match any of that money which the government contributes. Hunt also said that the government’s investment would create 600,000 new jobs, based on an estimate by investment body NESTA. However, academics at the London School of Economics put the figure at 280,000, and the Federation of Small Businesses believe fast broadband will add £18 million to Britain’s gross domestic product.

Meanwhile, BT is in the process of investing £2.5 billion in rolling out fibre to around two thirds of UK homes by 2015. BT believes that the new commitments will make the UK one of the best connected countries in the world for so-called next generation broadband.

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Scottish government announces digital strategy The Scottish government has outlined plans to improve uptake of broadband across the country, as well as foster increased participation in digital activities, in a report entitled Scotland's Digital Future. "There is a clear role for the public sector in realising Scotland's digital future," said Scottish culture minister Fiona Hyslop. The report coincides with the release of £1.5m by the Scottish government to fund activities throughout 2011 designed to increase the uptake and use of fast broadband, including moves to get more businesses online. The report outlines plans to get Scotland fully connected to next-generation broadband by 2020, with an aim to at least match or overtake the UK uptake average. To secure the best possible share of the coalition's £830m super-fast broadband war chest, Scotland will be working with local authorities and other stakeholders to develop a strategic infrastructure plan for Scotland. Further to this, plans to develop an online portal for Scottish public information and services are under way, and a beta site is set for launch by the summer. Despite these moves, CIVIC, an independent creative digital agency, believes Scotland's digital plans are still missing some key elements. "We would expect to see a move towards simplification, automation and a reduction in duplication [within the strategy] but this principle is nowhere to be found," said CIVIC managing director, Greig Tosh. "We would like to see more cost transparency on public sector ICT, and we believe this would open the way for more responsive, cost-effective solutions from Scotland's smaller IT firms." Tosh also criticised the Scottish government for overlooking open source. "It's an achievement to write 50 pages of a national digital strategy without even mentioning open source," he said. "Open source – the ability to view and adapt code which you have the right to use because it is either free or available through a licence – should surely be a requirement for any government seeking to be in charge of its own destiny," he added.

Demand for retail IT staff leaps 45% Demand for IT staff in the retail sector grew 45% in the fourth quarter of 2010 compared to the same period in 2009. According to the latest survey by Salary Services Limited (SSL) and JobAdsWatch.co.uk, the number of permanent staff recruited by retail organisations grew 5% in the fourth quarter of 2010 compared to the previous quarter, with 45% more vacancies being advertised than in the same period in 2009. However, vacancies are still down 48% on pre-recession levels of recruitment for the sector. IT Skills in retail The table below shows the programming vacancies retailers advertised for during the fourth quarter of 2010. "This surprising figure is due to a number of factors, which include better development tools becoming available that lead to improved productivity, more reliable software and hardware needing considerably less support and operations staff to run computer centres," said George Molyneaux, research director at SSL. Salaries for permanent staff in the retail sector increased by 2% since 2009, whilst salaries for Project Managers were down by 3%. Demand for Developers surged 24% in quarter four; SQL being the software skill most in demand, followed by C and Java. Table 3 Skill Vacancies SQL 488 C 291 JAVA 227 .NET 210 C# 217 HTML 207 ASP 175 AGILE 194 JAVASCRIPT 181 SQL SERVER 162

SQL Vacancies in retail

0

100

200

300

400

500

600

700

Q4 2007 Q4 2009 Q3 2010 Q4 2010

Q4 2007

Q4 2009Q3 2010

Q4 2010

UK Internet Economy Worth £100 Billion a Year A report by The Boston Consulting Group (BCG) has identified the value of the Internet economy in the UK. The report reveals that the UK Internet economy contributed £100 billion in 2009, representing 7.2% of U.K. GDP — more than construction, transport, or utilities. The report finds that this share is likely to grow by about 10% annually, reaching 10% of GDP by 2015. Around 60% of this total is driven by “consumption” - the amount that Internet users spend on online shopping and on the cost of their connections and devices to access the Internet. The remainder comes from investment in the United Kingdom’s Internet infrastructure, government IT spending, and net exports.

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IT jobs: Hiring back to pre-recession levels IT recruitment has bounced back to pre-recession levels, according to a new survey. It also found that general hiring activity levels during 2010 were comparable with those in 2007 before the recession hit many tech jobs. Application developers with expertise in Apple's iPhone and RIM's BlackBerry were found to be particularly in demand, with infrastructure specialists and professionals with strong enterprise backgrounds highlighted by the report as being the most consistently in-demand IT workers. Linux and PHP developers were also sought after, according to the report, with businesses also focused on hiring IT staff with skills in open-source technology. 'Very few' IT employers hiring to fill skills gaps Training day, not hiring day, is the focus of IT departments planning to fill internal skills gaps in the next few months, depriving IT temps of a normally reliable way to cash in. Despite concerns about their value, an internal IT training scheme is the priority for 70% of IT leaders tasked with boosting the technical abilities of their on-site IT team. Speaking to pollsters for computer jobs agency Modis, half the IT leaders said their techies weren’t adept on systems already in place to effectively support the outfit’s wider objectives. And upgrading the organisation’s hardware won’t help, a third of the leaders suggested, as the existing IT team wouldn’t “have the right expertise to cope with new systems at all.” But rather than hiring, IT leaders say they will plug the skills gap by training existing staff already on the payroll, implying IT departments lack the resources to invest in new talent. Under greater pressure to make technology deliver commercial objectives, Modis added, IT leaders “don't have the tools and in some cases the teams to do all aspects of the job.” Managing Director, Jim Albert sympathised, saying commercial demands on IT personnel were often “highly complex”, requiring specific knowledge of statistics and data management systems. Still, just 15% of the IT leaders are considering outsourcing their IT needs as a result, and only a “very few” said they would respond to the knowledge gap by hiring new IT workers. One obvious exception is Google, which said 2011 will be its “biggest hiring year” so far, indicating that the search giant will take on at least 6,200 workers over the next 10 months.

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How can we find the new recruits that IT needs?

First the bad news: the number of Computing A-levels taken in the UK has declined by 60% since 2003, and IT graduates have declined by 44% since 2001. With increased tuition fees this is unlikely to change - e-Skills anticipates just 18,200 entrants from education. This leaves 91,800 to recruit through other avenues. The good news is that talented people in all sectors are looking for work - the challenge is to attract them into IT.

More than half a million new IT professionals are needed in the UK over the next 5 years

Identifying the skills gap Many don't consider IT as a career path because they assume it's all about programming and requires a computing degree. However, recent CompTIA research found the skills most in demand are project management (listed as a required skill by 80% of respondents); database administration/design (77%); business intelligence (75%); PC/technical support (71%); and cloud/SaaS (70%). Close behind were network administration (66%), virtualisation (65%) and security (63%). Connecting people looking for jobs with jobs looking for people If UK plc is to reap the economic benefits of IT, we need to ensure good training and qualifications are available to attract new blood and develop existing professionals. There is encouraging news. The government's Blueprint for Technology aims for the UK to become the most attractive place in the world to start and invest in IT companies. It plans to fund 75,000 additional adult apprenticeships by 2014/15. This is a great initiative, but alone is not enough. It is imperative that IT companies - who have the most to lose from lack of skills - also act to bring people in. IT companies need to attract non-IT professionals and provide them with training and hands-on experience. Certifications are an important part of the process, particularly for recent entries to the profession, as they validate an employee's skills and boost their confidence. Don't forget about our existing talent We must not forget about the talent we already have. The report showed one in 10 firms reported gaps in IT staff skills, which is cause for concern. We are relied upon to keep abreast of the latest technical innovations and security threats in a rapidly changing world - we can't afford not to keep skills up to date. Training and certifying existing staff equips them with the expertise and motivation to meet an organisation's changing needs and supports career development. In an industry with more jobs than qualified people, employees can afford to be picky. Companies need to show them they are valued. Training and certification is one of the best ways to boost staff retention and recruit top talent. Not being left behind It is critical, both for our sector and the UK economy, that we increase the numbers of IT professionals. This means promoting the value of a career in IT, and training and certifying IT staff. If we don't invest in developing our workforce we will be left behind, while other countries and companies reap the rewards of this lucrative sector.

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Marketplace IT news

IT market Regional Economy Comment

Barclays Bank boosts IT staff and project spending

According to the results, overall staff numbers have increased from 66,000 in 2009 to 67,000 last year across the firm's global retail banking operations. This is largely due to the insourcing of operations and the company's international development of IT infrastructure, as well as the development of Barclays Shared Services unit in India and the acquisition of Standard Life Bank last year. Overall administration and general expenses in the banking arm increased, up 18% from 2009's figure of £5.56bn to £6.585bn last year. According to Barclays, the boost is mainly related to

investment in technology and infrastructure, as well as greater regulatory-related costs and spending related to the buy-out of Standard Life Bank. Cloud computing to boom in 2011 Cloud computing will be one of the fastest growing IT markets in 2011, according to analysts. A report by research company IDC predicts that while global IT spend will increase by 6% in 2011, spending on public cloud computing services will grow five times faster. Cisco axes corporate cloud email Cisco has decided to discontinue its Cisco Mail software as a service (Saas) product, saying customers are now interested in social collaboration and stand-alone email. Cisco Mail, which was originally launched as WebEx Mail, will be phased out to allow customers to move to alternatives. IT chiefs braced for staff jumping ship in 2011 IT directors have identified staff retention as the top challenge facing their business in 2011. The lack of skilled tech workers on the jobs market means 85% of IT directors are concerned about staff retention this year. Business demand for IT skills escalated throughout 2010 as tech projects mothballed during the downturn were restarted. The subsequent increase in IT workload resulted in 41% of IT chiefs increasing their department's headcount in 2010, compared with 32% in 2009. Staff turnover is on the increase rising to 11% in 2010 from 9% in 2009.

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Gartner predicts boom in social CRM The customer relations management (CRM) market is set for a shake-up in the next three years as global spending on social CRM software passes the $1bn (£620m) mark, according to the latest research from Gartner. The analyst firm's predictions for CRM in 2011 and beyond state that social CRM will encompass approximately 8% of all CRM spending in 2012, up from roughly 4% in 2010. Staff face axe as London councils reveal what shared services will mean for IT Three London councils - Westminster, Kensington & Chelsea and Hammersmith & Fulham - are set to save £400,000 a year by rationalising ICT jobs as part of their ongoing shared services strategy. The councils say this equates to a reduction of between 10 and 12 ICT posts. In a document entitled "Tri-borough Proposals Report: Bold ideas for challenging times", the councils outline their plans to make substantial savings over the next five years by, among other measures, cutting staff, adopting unified communications and closing up to four datacentres.

Since 2001 there has been a 45% reduction in applicants to computing degree courses

"There is certainly scope for the consolidation of staff in IT, by merging similar functions and reducing duplication in some strategic roles. Not all of these are tied up in outsourced contracts either," says the document. It points out, for example, that separate teams are providing IT desktop, application and network support to primary schools. KANA Software creates 109 new IT jobs in Belfast KANA Software has announced plans to create 109 new jobs in Belfast, following its acquisition of local firm Lagan Technologies last November. The US-based service management software company, which names companies like Adidas, Nokia and eBay among its customers, is investing £7.8 million in the job creation. This is also being supported by £981,000 in funding from regional economic development agency Invest Northern Ireland. KANA will be recruiting the new employees over the next three years. According to its website, KANA is looking for software engineers, project managers and technical consultants. The company currently employs 321 staff across the US, UK, Australia and Japan.

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Shell signs €300m outsourcing deal Oil giant Shell has signed a €300m outsourcing deal to support its fuel payment-card services. Under the 10-year deal, UK outsourcing firm Logica and payment specialist FleetCor Technologies will provide and run the technology platform that underpins Shell's portfolio of fuel-card services in 35 countries in Europe and Asia. The first pilot of the new platform is due to be completed by April 2012, with the full rollout concluded by the end of 2013.

Fidelity Investments creates 100 tech jobs in Ireland Financial services firm Fidelity Investments has announced plans to create 100 software jobs at its offices in Galway and Dublin. The jobs will range from entry-level to management-level, and will be in the areas of software development, such as Java and .NET, performance and test engineering, database development and management, systems analysis and QA.

21million Britons use IT in their everyday jobs

Bet365: We need talented IT people Bet365 is looking for new IT talent to help it develop systems that will give the online gambling company a competitive edge. The company wants to recruit people who can help it develop new systems that “aren’t constrained in the way existing systems are”, according to Martin Davies, CTO of bet365. “We are always on the lookout for more talented people,” Davies said. “For example we want people who understand low latency systems and how they work.” He added that Java skills are also required for the company’s primary core, and Microsoft SQL server, .Net and C# skills are needed for bet365’s main transactional system. Bet365, which went live in 2001, currently employs more than 1,400 employees in Stoke-on-Trent. More than 300 of the staff are in IT, which includes around 160 developers and the rest employed in supporting functions, infrastructure, database administration and so on. Thousands lose Vodafone service Vodafone's mobile network has been disrupted following a break-in at its exchange centre in Basingstoke. The company said that several hundred thousand customers had lost voice, text and internet access. Burglars hit the facility stealing computer equipment and network hardware. Most of the users affected were in the M4 corridor area, to the west of London.

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Microsoft to set up 1,000 apprenticeships in London Microsoft has plans to create 1,000 apprenticeships in London over the next three years, as part of a drive to boost training positions in the capital. London mayor Boris Johnson announced the software maker's pledge, during an event that kicked off the London Apprenticeships Campaign. The drive aims to provide 20,000 opportunities for young people looking for work in the capital. The Microsoft apprenticeships form part of the company's Britain

Works programme, which launched in 2009 and aims to get "500,000 people back into work by 2012", Stephen Uden, the software maker's head of skills and economic affairs, said at the event.

Information security professionals must keep skills up to date There is a clear gap in skills needed to protect organisations, a study has revealed. The information security community admits it needs better training in a variety of technology areas, according to the 2011 (ISC)2 Global Information Security Workforce Study (GISWS) conducted by analyst Frost & Sullivan. The profession as a whole appears to be resistant to adapting to new trends in technology such as social media and cloud computing, Frost & Sullivan said in the GISWS survey of over 10,000 security professionals, including 25% of non-(ISC)2 members. More than 50% of respondents reported having private clouds in place. More than 40% used software-as-a-service, but more than 70% said they lacked the skills to secure cloud-based technologies.

Government spends £9.4bn on top ten most expensive ICT contracts The government's top 10 most expensive IT contracts are worth a combined value of £9.44bn, Computer Weekly has found. The government's recently published data on ICT projects worth more than £1m totals around £16bn, with as much as 60% coming from the 10 most expensive contracts. Of around 150 contracts listed, the Department of Work and Pensions' Enabling Retirement Savings Programme (ERSP) is the most costly at £1.88bn, followed by the Data Centre Consolidation, G-Cloud and Applications Store for Government (£1.55bn) from the Cabinet Office. The government had pledged a cap on contracts worth more than £100m, but a recent report from the National Audit Office suggested this limit may no longer be implemented.

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e-Skills Technology Insights 2011: Key findings

- The UK’s IT & Telecoms industry delivers an annual GVA contribution of £81 billion, 9% of the total UK economy. - IT & Telecoms is at the heart of every UK sector, underpinning the GVA contributions of all businesses. - Exploiting the full potential of technology could boost the UK economy by an additional £50 billion over the next 5 to 7 years. The IT & Telecoms sector will underpin the majority of future job creation in the UK - One in every 20 people (1.5 million) working in the UK is employed in IT & Telecoms. - Employment in the IT industry over the next decade will grow nearly five times faster than the UK average. - Over half a million new IT & Telecoms professionals are needed in the next five years, working across all sectors of the economy. - In terms of GVA contribution per head, an individual working in the IT & Telecoms industry is almost twice as productive as the average UK worker. Trends shaping IT skills change

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Attracting high quality recruits to the IT & Telecoms workforce is crucial for the competitiveness of all sectors of the economy. - IT & Telecoms in the UK is increasingly focused on higher value, highly skilled roles that harness technology to drive innovation and wealth creation across the whole economy. - Of those firms with IT & Telecoms professionals, around one in ten report gaps in their skills, most often in their business and technical skills. - Nine of out ten firms suffering IT & Telecoms related skills shortages are experiencing delays in the development of new products or services. Workers across the UK economy need higher levels of IT User skills, with IT literacy increasingly a prerequisite for employment. - 22 million people - 77% of the UK’s total workforce - use IT in their jobs, and this proportion will continue to rise. - 92% of advertised vacancies require applicants to have basic IT skills. - Gaps in IT user skills are reported by around 1 in 10 UK businesses. There has been a decline in the number of young people studying technology at school and university. - Since 2002 there has been a 33% reduction in applicants to computing degree courses. In contrast, applications to other STEM courses have increased by an average of 23% over a similar period. - Only 9% of students taking A-level Computing and 15% of those on computing degrees are female. - The proportion of IT & Telecoms professionals under 30 has dropped from 33% in 2001 to 19% in 2010 as the sector favours experienced workers from other sectors over young recruits from the education system. http://www.e-skills.com/

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