THE Scottish technology industry annual ‘barometer’ is pointing to a sunny outlook for the year ahead.
Says annual Scottish Technology Industry Survey, 63 per cent of digital technologies companies surveyed are optimistic or very optimistic about the outlook for their businesses this year. More importantly, 63 per cent of companies plan to increase headcount this year as a result. And of these, one in ten companies anticipate increasing staff numbers by more than 20 this year.
The survey, commissioned by the digital technologies trade body, ScotlandIS and technology specialist 9-20recruitment, provides an annual health check for the industry, which includes the software, telecoms and IT services sectors.
The digital technologies industry currently employs one in 20 of Scotland’s workforce (over 100,000). The contribution that the sector makes to productivity growth is the fifth highest in the UK, adding £3.4bn to the Scottish economy annually.
The survey results also showed that permanent employees rather than contractors are the preferred option for the majority of respondents, in particular for sales and marketing and infrastructure and support functions.
Encouragingly, graduate roles are set make a welcome return as the second highest level of jobs in demand in the ICT sector (28 per cent).
Gordon Brown, director of 9-20recruitment. said:
“This year, we are seeing organisations within the technology sector create lots of new revenue streams through productisation and new technology spin offs. Fresh investment, which was far less evident in previous years, is now making a come back and giving SME’s and start ups the chance to compete with larger companies. This continued investment will allow Scotland to hold on to the most talented IT professionals on the market and help to secure the future of this sector.”
From the technology companies surveyed, 54% reported a rise in turnover during 2010 and the vast majority of companies (79 per cent) expect sales to rise even further this year with only 11 per cent expecting sales to decline.
Polly Purvis, executive director of ScotlandIS, said:
“The survey results reflect the continued confidence in the digital technologies industry which seems to have coping with the difficult economic conditions by being more prepared to explore new markets and more aggressive in delivering growth in the year to come.”
Interestingly, smaller businesses (200 employees or less) are the most optimistic about sales growth, expecting their sales figures to rise by up to 20 per cent, while very large companies anticipate growth to be in single figures.
Cash flow, however, remains a problem for companies with a third of all surveyed experiencing difficulties in this area.
While work in the public sector market is expected to fall sharply for the digital technologies industries this year, Financial Services has firmly regained its position as the top sector for new business opportunities. 31 per cent of respondents count Financial Services as one of their main markets and three quarters of these are expecting demand from this sector to increase this year.
John McGuire, CEO at Pulsion Technologies, said:
“After a tough couple of years we are seeing a marked increase in demand as clients make new investments of technology to improve their competitiveness. We are quietly optimistic for the coming year and are busy planning for growth.”
ends
Notes:
The survey was carried out by ScotlandIS in January/February 2011. The survey analysis was undertaken by ScotlandIS, with statistical expertise provided by 9-20recruitment.
- 63 per cent of those surveyed are optimistic or very optimistic about the outlook for the year ahead (down nine per cent on last year).
- The digital technologies industry currently employs one in 20 of Scotland’s workforce (over 100,000)
- The contribution that the sector makes to productivity growth is the fifth highest in the UK, adding £3.4bn to the Scottish economy annually
- Of those surveyed, 54 per cent reported a rise in turnover during 2010
- The vast majority of companies (79 per cent) expect sales to grow this year and only 11 per cent expect sales to decline.
- Smaller businesses (200 employees or less) are the most optimistic about sales growth, expecting to increase their sales figures by up to 20 per cent while very large companies anticipate growth to be in single figures.
- Work in the public sector market is expected to fall sharply this year, Financial Services has firmly regained its position as the top sector for new business opportunities.
- 31 per cent of respondents expect Financial Services to be one of their main markets and of these, three quarters expect that demand from this sector will increase this year.
- 63 per cent of companies plan to increase headcount this year. Of these, one in ten expect to increase staff numbers by more than 20 in 2011.
- Permanent employees rather than contractors are the preferred option for the majority of respondents, in particular for sales and marketing and infrastructure and support functions.
- Graduates roles are now the second highest level of jobs in demand.
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