Freelancers' Shop

Business in booming in IT sector - and for contractors too

by Susie Hughes at 11:42 23/12/15 (News on Business)

The growth of the IT sector in the UK has accelerated to its fastest rate since the end of the recession - the number of IT enterprises has jumped nearly eight per cent in past year and the IT sector is creating new jobs at nearly three times the rate of the rest of the economy.

Contractor accountants, Nixon Williams, analysed data obtained from a variety of recent reports published by the Office of National Statistics, which show that there are currently 154,765 active IT enterprises in the UK, a 7.9 per cent increase on the previous year when there were 143,450 active IT enterprises. The rate of new business creation in the IT sector is at its highest level since before the start of recession in 2008. At the same time, demand for IT skills is accelerating. The total size of the IT workforce is also increasing at its fastest rate since the end of the recession. A further 24,000 IT jobs were added over the past year, an increase of 5.2 per cent on the previous year. By comparison, the number of financial service sector jobs – which often competes with tech companies for the best talent – declined from 1,178,000 in 2009 to 929,000 in 2015, a fall of 21 per cent. Advertisement Daniel Knowles, Practice Manager at Nixon Williams, said: “The UK tech sector continues to flourish, driving economic growth and providing a leading role in job creation. By some estimates the tech hub around London’s ‘silicon roundabout’ is outpacing Silicon Valley for growth, and this is being closely matched by the rate of digital start-ups in regional tech clusters, such as in Liverpool and Manchester. “The growth in London’s financial technology sector is being driven by the rapid uptake of new technologies by affluent and young consumers. This is attracting record levels of venture capital investment into the sector. Not only is London a hub for UK tech start-ups, but it is also a magnet for foreign tech businesses, which view London as a springboard to internationalisation. “Despite the success of London, the UK’s innovation ecosystem is increasingly comprised of regional tech clusters, many of which are developing their own key strengths, as like-minded entrepreneurs conglomerate and feed off each other. The high cost of workspace and staff in London is making Manchester and other cities increasingly attractive for start-ups. Manchester, for example, is carving out a niche in areas such as big-data analytics and cyber security.” Contractors According to Nixon Williams, demand for IT contractors with specific skills sets is growing strongly, particularly among start-ups, which are often hesitant to commit to hiring full​-​time employees. Daniel Knowles said: “We are seeing strong demand for IT contractors across the board. While larger organisations have increased hiring of cyber security specialists in the wake of recent high profile data breaches, among SMEs demand for contractors is strengthening as start-ups look to outsource work as they expand, without taking on employment risk.” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2015

Printer Version

Copyright 1999-2018, Shout99.com | All Rights Reserved
Privacy Notice and Terms of Use