The IT contracting sector, as a component of the UK’s wider IT industry, is outperforming the UK economy across a number of economic measures.
This is according to new research, Information Economy: Economic Estimates 2013, by sector skills council e-skills UK, professional institute the British Computer Society (BCS) and trade association Intellect
The research, which also highlights that nearly half of all UK IT firms are based in London and the South East, “shows that tech in the UK and the wider information economy is in robust health”, says Intellect’s Julian David. “[It] is a timely reminder that continued economic recovery is critically dependent on digital expertise – and that the UK tech sector is well placed to lead it.”
According to the research, information economy workers such as IT contractors also “tend to be more highly educated than average, with just under two thirds (65%) holding some form of higher award”. This compares with a UK-wide workforce average of 40%.
The growth in the number of contractors and employees in the information economy has also outpaced the wider UK. Between 2009 and 2012, the number of IT workers grew by 8%, which is four times the rate recorded for the workforce as a whole.
“The UK tech sector is critical to the national economy,” continues David. “Across all industries we employ more than 1.4 million people, representing 5% of the total UK workforce.”
In addition to the heavy location bias towards the South East of England, over a quarter of IT businesses are less than two years old. This compares with one in six across all industry sectors.
Part of the relative youth of business in the sector may be as a result of new limited company IT contractors switching from permanent roles. Many have done so as major IT contractor consumers, such as the financial sector, have started to recover and demand more contractors.
This is supported by the surge in new IT companies between 2009 and 2012. The total number of information economy enterprises grew by 7% during that period. Across the rest of the economy, enterprise numbers actually declined by 0.1%.