The e-Minister said the supply of advanced IT skills was "the most acute" out of a range of other sectors, including construction and engineering.
Mr Timms called for levels of employer investment in skills and training to be raised and said there was a need for employers to gain a better understanding of the benefits training brings.
The Minister also acknowledged a recent call from e-skills UK, the organisation that measures national supply and demand for IT professionals, for industry to work more closely with training providers and tailor courses to employers' demands.
Graduates should also receive more assistance to make them "employment ready," the Minister said, echoing another of the calls made in the e-skills report.
Mr Timms also pledged to take on board recommendations made in the Roberts Report - a review of the national supply of scientists and engineers conducted by Sir Gareth Roberts, President of the Science Council.
Mr Roberts warned in the report Britain faced a future skills shortfall if it neglected to encourage more young people to study high-level mathematics, physics, chemistry and engineering.
Adrian Snook, Director of Corporate Development at the IT Training Foundation, said: "According to Government figures, UK labour productivity currently lags behind that of other major industrialised countries. There are a number of reasons for this, including the comparatively poor level of skills and the interaction between low skills and low investment."
Mr Snook cited Government figures that showed thirty-six per cent of working age adults in the UK, over 13 million people, lacked basic school-leaving qualifications.
He added: "It is to the Government's credit it has identified the need for action and is setting in place a Workforce Development Strategy, but they cannot act alone. The active co-operation of all stakeholders will be required to develop a more highly-skilled workforce, better able to adapt to the demands of a changing economy.
"It is not too late for the UK to meet this challenge, but we will obviously need to compete on the basis of innovation, productivity, effectiveness and quality of service rather than cost. This means that the skills of UK workers will need to be developed at a pace that more than matches the progress currently being made overseas."
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Richard Powell, © Shout99.com 2002
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