UK IT Industry Boosted by Investment in Cloud Services

It is widely known that the service industry is the bulk of the UK economy, with tech companies now gaining weight and weakening the UK’s typical reliance on the financial services sector. Through sizeable investment placed into the tech industry already in 2014, the IT sector is firmly a solid contributor to UK output and employment figures.

 

UK industry boosted 1The UK Trade and Investment (UKTI) organisation states that the ‘ICT industry is worth £58 billion annually,’ with growth expectations above the private sector average. KPMG report that UK tech firms plan to increase their employment strongly in the next 12 months, with an estimated 34% of firms expecting a rise in staffing levels.

Cloud computing, in particular, is highlighted as an area of importance in the government guidance document, ‘Information Communications Technology (ICT) in the UK: Investment opportunities.’ It states that cloud technology is set to rapidly increase over 2014 with an estimated increase of 30% in the use of cloud services amongst small medium enterprises (SME’s). TechMarketView predicts that 2014 will see the cloud computing market reach £6.1billion.

The implementation of the G-Cloud programme compels central government to adopt a ‘cloud first’ policy when buying and using IT services. This has allowed for increased opportunity for SME’s to tender their services for large public service sector contracts, which were once the domain of large corporations.

UK based cloud services provider SkyScape has secured a £4 million investment from the government-backed British Growth Fund. With a current growth rate of 20% per month, this is a prime example of an SME that has established itself as a key player in the market, allowing it to bid for public sector contracts.

Large corporations are of course quick off the mark too; IBM recently invested more than $1.2 billion (£75 million) to establish 15 new centres globally (including one in London). With a belief that the global cloud services market could reach $200 billion by 2020, IBM is ensuring that they make their presence felt in a move away from traditional hardware investment.

This boost in confidence in the cloud sector has translated into an increase in jobs in this area. Here at The IT Job Board we have seen a huge 400% increase in the amount of cloud computing vacancies advertised over the last year. What’s more, in a bid to attract personnel with the skills that companies are seeking, salaries have also risen 8%, with the average salary being £60,000 per year.

With cloud computing finding its way into everyday activities from personal computing to central government systems, employers are increasinglyfocusing on ensuring they find candidates with the appropriate skill set. Importance in this sector is attached not only to an individual’s technological capabilities, but also their commercial awareness; making it a solid move for existing IT professionals with alternative experience.

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