Nearly four and a half years ago London was immersed in celebrations at the announcement that the next Olympic games would take place in the UK’s capital. But with all the bad press surrounding the inflated budget for the prestigious event, the British people were soon to sober from the inaugural Olympic fever that swept the nation.

So how much has the projected cost risen to and what percentage of this is needed for IT and technology? Are IT professionals benefiting from a new source of jobs and will this event lead to long term opportunities in the IT recruitment sector?

Technology and the Olympics

With the Beijing Olympics a massive success, how are we going to measure up for London 2012? Will we be able to follow in their footsteps or will we let the side down?

If last year’s Olympics are anything to go by, we’ve certainly got our work cut out.

China organised wireless information systems for journalists; radio frequency identification technology for ticket verification (RFID); commentator information systems; worldwide TV coverage (including HD and 38 million online video streams) and Digital Ignition Control Systems to control any time lag between fireworks displays in the various venues. Inconceivably, organisers of the Beijing Olympics even attempted to control the weather with technology by sending missiles soaring into the sky to prevent rain.

And that’s not to mention the unforgettable opening ceremony that illuminated the floor of the Bird’s Nest as performers took to the stage and wowed us with over 44,000 LEDs in the infamous scroll alone.

So what about London 2012?

ZDNet.co.uk, stated that the IT infrastructure in London will consist of more than 900 servers, 8,000 PCs and 1,000 network and security devices. And these numbers have all been lowered through the planned use of green IT systems such as virtualisation to reduce the number of servers needed and control costs. As the system will link more than 94 venues across the UK as well as the Olympic Village itself, it is vital that this is sound to ensure the event runs smoothly.

An article on Silicon.com has claimed that nearly £7billion pounds will be pushed through the technology sector as part of the grand event. This includes a projected budget of £204m for information systems, £63m for telecommunications and £12.5m for Internet applications allocated by The London Organising Committee of the Olympic Games (Locog).

Potential Problems

Apart from the projected cost of this event being estimated at over £20bn (ten times the original amount), there is another crucial matter to be considered.

At this year’s InfoSecurity conference David Blunkett raised this issue of IT security at London 2012. There are fears that the information systems used in the Olympics could be used as an easy target and could pose a real threat to national security. Although physical security measures are being put in place, some fear that weaknesses in the Olympic IS may be overlooked and could easily be exploited. An article on Inforsecurity-magazine.com reported that security staff in China’s capital dealt with up to 12 million security alerts every day. This is no easy task and an area where resources should definitely not be pulled. But with the budget already stretched, how can we be reassured about such an important issue?

Yet ZDNet.co.uk has claimed that Locog is even calling for IT volunteers for the occasion. Surely an event of this scale that will be watched worldwide should not be calling for volunteers? But with so much money being poured into the Olympic fund and so many professionals working on the project, why are we not seeing a huge increase in the number of jobs? Wasn’t one of the primary reasons for hosting the games to boost the economy both in terms of tourism and new job opportunities along with the regeneration of a deprived area of London? According to the BCS, much of the hardware deployed in such an event, although recyclable, seems to ‘disappear’ once the games are over and therefore no revenue is generated from this area.

London and the Olympics

Computer Weekly recently reported that the Olympic IS team is expected to grow between 10 and 50% each year leading up to the games and ZDNet reported back in 2007 that there had been an increase in the number of IT contractors working on the Olympic site year on year. However there have been no recent reports about a rise in new Olympic IT jobs. So it seems the capital being poured into the games is not being translated into jobs to the extent that was hoped, at least not in the short term. Having said that, the reference to the Olympic IS team must be referring to the main core of the Information Services team and does not take into account all third parties involved responsible for advertising, sponsorship and any other areas of the event itself.

So let’s hope it benefits the economy in other ways. But what about the long term, will this event create more opportunities in the world of IT for years to come or is this much ado about nothing?

It is quite possible that these estimates of IT staff have been underestimated in the same way the initial figures in the budget were. According to ZDNet Asia, in Beijing over 3,500 technology workers used the IT infrastructure to enable the event to run smoothly.

Another important factor to consider is that it is impossible to accurately estimate the number of jobs that have been created and will be created as a result of the Olympics 2012 taking place in London. This is due to the volume of third party companies involved in the even as a whole, which is inevitable given the scale of the event. In addition to the Olympic Delivery Authority (ODA), the Home Office and the Locog are also involved. To give you an idea, there are currently 144 suppliers listed on the ODA website for the Olympic stadium alone. There is not one single body recording the number of jobs offered by each company, contractor or supplier meaning this may not even be measured.

What can we expect?

Unfortunately, it seems unlikely that London 2012 will lead to more jobs in the IT sector either in the short term or the long term. However what is clear is that this event will boost the tourism industry in Britain and will ultimately be underpinned by a solid, advanced, IT system and infrastructure. But in terms of dazzling us with a technology-fuelled performance, will London be able to compete with China? We will just have to wait and see.

In 2007 40% of the UK’s GDP came from the financial services sector. When the credit crisis hit there was a huge uproar, with many people pointing the finger in the direction of the finance sector. It was thought that the Investment bankers’ greed and self-gratifying nature was the root cause of the credit crisis. If the government had invested funds more evenly across the different sectors, could it be that the credit crunch could have been avoided, or at least been less severe?

In June 2009 Chancellor Alistair Darling announced that the Government has developed a £750 million Strategic Investment Fund (SIF) to advance the UK’s basic capabilities for industrial innovation, job creation and growth in a highly competitive economy. Out of the £750 million SIF, only £50 million is being apportioned to the Technology Strategy Board to invest in technological innovation. Is the government missing a trick here with the allocation of this budget? Should a larger proportion of the budget be invested into the IT sector?

The IT Job Board carried out some research to discover how much the IT sector actually contributes to the UK economy.

IT’s worth it

In 2007 the UK ranked 6th in the list of countries by GDP by the International Monetary Fund (IMF), generating just short of $2.7 billion. However, Office for National statistics (ONS) estimate that the computer services sector contributes only 3% to the UK economy annually. Yet according to MicroScope.co.uk IT and Telecommunications employ approximately 1.5 million people within the UK and there have recently been reports that the IT industry will help to pull the UK out of the recession. So could we not be making more of the IT sector in the UK?

Within the IT sector, there is one area in particular that has been booming in recent years.

As mentioned in an article on the National Endowment for Science, Technology and the Arts website (NESTA), the video games sector in the UK contributes £1 billion to GDP, more than the music and film industry combined.  An article on guardian.co.uk states that the global games market is worth £18bn with projected growth at a compound annual rate of 10.3% between 2008 and 2012. Therefore is this an area the UK could look to develop further?

Britain is currently the fourth biggest game producer in the world. An article on Ukinvest.gov.uk states that the UK is home to around 280 games companies and employs around 10,000 staff in creative positions.

An article published in September 2009 by BBC.co.uk, explains that the games industry generates £20 million a year for Scotland alone and employs over 700 people. Additionally, Dundee is home to one of the games’ market leaders Realtime Worlds, the company that developed Grand Theft Auto and Lemmings.

Richard Wilson head of TIGA, the industry body for the games industry, stated that the games industry is a highly successful and growing economic sector with great potential. Moreover, in Scotland, 36 per cent of the games industry’s revenue is actually generated from exports, this illustrates the level of importance the games industry has on the country and how necessary it is to protect this.

Problem emerging…

Ukinvest.gov.uk reported that globally the UK was ranked as the third largest producer of computer games, positioned just behind the United States and Japan until 2006 when it dropped to fourth place, having been overtaken by Canada. In addition to this, NESTA declared in a press release that the UK is still expected to fall another two places in the ranking by 2010. This is due, in part, to the increase of Brain Drain in the UK IT industry, meaning Britain is losing the creativity and talent of its developers that are moving to countries where the games industry receives generous subsides.

TIGA have argued that unless the sector receives help from the UK and Scottish governments the games industry could struggle. Wilson explained that the lack of tax breaks for the industry puts Scotland’s firms at a serious competitive disadvantage, the same could also be said for the UK as a whole. Interesting research from NESTA revealed that investment in privately held games companies has dropped by 60% since 2008.

Wilson explains further that without government intervention, the UK games industry faces serious challenges such as: skills shortages, brain drain and a competitive environment characterised by overseas governments giving substantial assistance to their games industries.

Potential solution…

TIGA have advised/believe that the UK government should impose tax breaks similar to those given to firms in France and Canada, as they believe this will help UK firms to remain competitive, as tax breaks can amount to up to 37 per cent of a game’s production costs. This would boost the economy, reduce brain drain thus leading to more jobs in this area of IT.

TIGA has posed a plausible solution to boosting the UK games industry, however, what are the potential ramifications of this solution to our economy as a whole? It could be that introducing tax breaks to one economic sector, could be detrimental to the success of another.

Is there hope?

An article by Computer weekly.com covered a speech by the new culture secretary Ben Bradshaw, where he stated “We do recognise the importance of the video games industry to the British economy. Research and development tax credits are available for the industry, and we are looking at introducing further tax breaks”.

So there is light at the end of the tunnel for the UK games industry. But what else can be done to enhance the development of this sector and further contribute to the UK economy? Are there also others areas of IT that are developing or that we could exploit further for the benefit of the UK economy?

There are now hundreds of ways to raise your profile, build your network and find the perfect job. However, with technology continually developing and the rapid growth of professional networking sites such as LinkedIn, Twitter and Facebook, are the traditional job hunting techniques a thing of the past?

How has new technology shaped job hunting?

A recent LinkedIn report details how the rise of social networking and an increase in the use of technology are two key factors influencing current trends in recruiting. But what does this mean to IT professionals? Can you still successfully highlight your skills and IT expertise through a CV alone when there are so many new and alternative options?

A report from Proactive HRM indicates that online networking is beneficial to IT job seekers, as recruiters can become more familiar with a potential candidate’s skills before approaching them personally.

IT professional Roberto Blake suggested the following;

“I believe that it will become increasingly important for IT professionals, if not everyone to have an online presence. It mostly used to be that web designers, developers and graphic designers would have websites to showcase their work and get job leads, but I now feel that everyone should consider this investment, particularly if they are involved in IT”.

How will job hunting adapt as technology advances?

So how far is technology going to go with regards to job hunting? Sanjiy Sood, Director of Huxley, London, predicts the future for job hunting and candidate sourcing may grow in three directions.

1) Further growth of social and professional networking – Sood states with regards to networking sites, “employers have direct access to ‘grade A’ candidates as they can buy into you as an individual through referrals. This is particularly important for IT specialists in the banking and finance sector, due to the nature of this division”.

2) CV Downloading – CV downloading has been used for some years as a way to quickly and conveniently view a candidate’s credentials. But in the years to come this is set to increase dramatically as employers are looking for cost effective and timely ways to recruit.

CV downloading or database downloading is where recruiters gain access to a database of CV’s and are able refine their search to headhunt candidates that fit their criteria. The IT Job Board recently added an upload your CV section to the site, so ensure your most recent copy is uploaded so that recruiters see your full potential.

Sood predicts that database downloading will be the predominant technology used for sourcing candidates over the next couple of years. As a result, suitable candidates can be easily found on the database, which in turn makes the recruitment process easier for both parties.

3) Mobile technology – Demand for technology on the move will continue to influence job hunting techniques. As an increasing number of people are adopting smart phones, access to advanced features has become a necessity for job hunters. With additions such as SMS alerts, mobile internet, GPS and iPhone applications, job hunting is taking a new direction. Job boards in particular are beginning to revolutionise the way in which candidates search for jobs by providing various platforms outside of their website to job hunt such as blogs, forums, iPhone apps and social networking sites.

Stay Ahead in the Job Hunt

So in light of this research, as technology is evolving so rapidly it is difficult to say which new technologies are here to stay.

Upon speaking to a number of IT professionals the general consensus is that you need to keep up to date with the latest technologies, adopt as many new job hunting techniques as you can, and more doors will open for you. Having said this, the classic CV and covering letter are not a thing of the past, just an additional component to these future techniques.

The IT Job Board would advise that you create a professional profile on the major networking sites, write to companies, upload your CV, send it to potential employers and seek out hiring managers. We feel that as technology changes, so must your search techniques. A smart combination of these will in fact shape the future of your job search.

At the end of last week any hopes of green shoots in the economy were dashed as new figures were released showing we are in the worst recession since records began.

But has any good news come out of this recession?

An article on Reuters earlier this year documented the story of an entrepreneur who left his position at a large bank in order to set up his own company. Following a little more research we started to notice many similar stories coming out of the woodwork.

The IT Job Board conducted a survey of 467 IT professionals in the UK to gauge the extent of the phenomenon within the IT industry.

Are IT professionals also thinking along similar lines and starting their own company? And if so, are they venturing away from the world of IT or sticking to what they know?

The yes camp

51.6% of IT professionals agreed that now is a good time to set up your own business and an astonishing 82% of respondents said they have thought about starting their own company.

In fact, a staggering 44.1% of participants in the survey stated that they already had started their own business and of the 55.9% that had not already, 47.6% are considering it.

Over three-quarters of the IT professionals that answered the survey said they would create an opportunity within the IT industry if they were to start their own company.

Those that chose to remain within the IT sector cited IT services as the most popular area in which to do so closely followed by web design and development.

Yet of the 22.5% that wanted to venture outside of the IT sector, there were three clear choices of industry: Media and entertainment (40%), FMCG (20%) and the pharmaceutical sector (20%). These are all high-profit making sectors but given the recent economic turmoil, starting out in the FMCG sector now seems like risky business.

Interestingly, the majority of respondents that had started their own company did so because they had been made redundant, supporting the anecdotes we found online. Fund raising and barriers to entry in the market were the primary problems facing new business start-ups. Legal barriers ranked lowest with only 16% of people selecting this as an obstacle.

So perhaps not surprisingly, an enormous 89.9% of survey respondents informed us that their new business ventures were self-funded. A mere 2.4% advised us that government funding had contributed to firm, leaving us with little hope for the future of start-ups in the UK.

However the overwhelming majority did admit that they may not know about the various government funds available, with 68% stating they did not know about all the options available to them and a further 21.3% saying they were unsure.

The no camp

There were many factors dissuading people from creating their own start-up, but the main ones, and probably the most obvious, were as follows:

• Too much risk involved – 37.2
• Not a good time – 29.8%
• Prefer the security of a job – 29.8%
• Too much work – 6.6%
• Difficulty in financing / securing a loan – 39.5%

According to The Insolvency Service, 3,635 companies declared themselves insolvent in Q2 of 2008 and that figure rose to 5,055 this year. So it is no wonder IT professionals have their reservations about taking such a huge risk in such an uncertain time.

On the other hand, you only need to look on one of the big search engines to find a wealth of resources and blogs on the issue of start-up companies, particularly during a recession. If people have been made redundant, companies are selling off stock cheap or selling property well below the asking price means overheads can in fact be lower at a time like this.

Start-ups during the recession

The results of our survey revealed that more IT professionals than we had imagined have actually started their own business in light of the economic downturn, and of those that have not, the vast majority are seriously considering doing so.

On 10th Aug, an article on smallbusiness.co.uk claimed that a survey by the Confederation of British Industry (CBI) claimed that small businesses are still being denied credit and that the cost of getting credit is far higher than before the crisis struck.

However a survey conducted by BT this month showed that 45 per cent of the 7,200 respondents surveyed, say their business operates for the better as a result of the downturn and the majority of SMEs are very optimistic for the year to come.

It seems some good has come from such a dire economic situation and the resilience and innovation showed by some of the worst affected by the recession are an inspiration to us all.

Events for Start-ups

If you are thinking of starting your own company and would like some more information, we came across these events during our research.

• Start your business 09 is taking place in the North East of England on 7th and 14th November in Durham and Northumberland respectively.
• The free Business Start-up show will be taking place on the last weekend of November in Olympia, London.

If any of you have any experiences, ideas or advice, share them with us here.

Over the past year The IT Job Board has picked up on an underlying sentiment from IT Professionals in the market that they are either being made redundant or missing out on job opportunities to lesser qualified, less experienced candidates who are willing to work for less.

Is this really the case? Are higher skilled IT professionals just not needed or are employers sacrificing the expertise and knowledge their business needs in order to save money?

And what happens to those with more experience? Should you accept a position with a much lower salary? Are you expected to use only half your knowledge, to not be challenged and to not develop in your day to day working life?

The IT Job Board decided to find out.

You get what you pay for

According to recruitment consultants that we spoke to, employers will shell out for specific, niche skill sets such as Coldfusion or PHP5 even if it means the expense of using an agent to find the right person for the job. However a skill such as project management is much more common in the marketplace and the number of candidates on the market has rocketed since the onset of the recession.

In this situation hiring managers are faced with plenty of choice, and with budgets under scrutiny the outcome is inevitable: candidates who have the relevant skills but little or no experience will be able to do the job but will expect a lower salary. But in doing so employers could be trading off quality for cost efficiency.

However, if you speak to recent graduates, so many of them are unemployed, doing internships or working in a completely different industry just to earn a living. An article published in the Times three days ago described just how dire the situation for future graduates is looking, as an extra 80,000 students are expected to flood the market and will be competing for graduate jobs within the next three years.

Over-qualified or ageist?

From our research it seemed there were in fact two issues being unearthed here.

The first is that the recession has probably forced IT professionals to apply for jobs they may well be over-qualified for.

The second issue that has emerged when researching this topic is whether or not being ‘over-qualified’ is an excuse for companies being ageist. We had many comments in the ‘Have your Say’ section on the blog when we posted a question about this, and this has resurfaced this week.

One comment from an IT professional was: ‘I have requested feedback where I have not got an interview for a position and been told I was over-qualified. Whether there was also an undercurrent of ageism as well is difficult to judge (I don’t indicate my age on my CV but an approximation can be gathered from work history).

After 18 months still trying to get back into work I suppose I would have to say the biggest issue is in convincing recruiters. Many do not recognise my Chartered award and so an easy option for them is to opt for graduates where they at least (in theory) have an inkling of the candidate’s potential.’

Ageism became officially illegal following the introduction of new legislation in 2006, which means that there is very little evidence given that no employer would want to admit to having reservations about a candidate’s age. So the evidence we come across is primarily anecdotal and it is difficult to decipher the extent to which ageism in IT plays a part in preventing an IT pro from being employed.

Yet Stephen Lytle, Sr. Technical Recruiter, feels in many cases managers truly believe a candidate is over-qualified.

‘In my opinion, there are few things more frustrating than being told you are too good for a position. I am sure others agree, but being that I am in a position to understand the hiring managers’ point of view, I will share it with you.

‘There are a few reasons why managers will not hire overqualified candidates. The first, and essentially most important, being that overqualified candidates will be bored with the work they are doing and will jump ship to a new and better opportunity as soon as it presents itself. Getting the budget approved for a new position, sorting through resumes, interviewing candidates, extending an offer, and taking an employee on board is very time intensive. The hiring manager only wants to do this one time, so all red flags will be addressed to prevent this process from having to be repeated.

Additionally, managers feel they will be pressured to provide that employee opportunity for advancement to meet their skills and abilities. Essentially, they hired you for a specific role and want to fill that role, by promoting you they will once again have to fill that role.

Finally, it is less common but managers feel that a candidate who comes in with an abundance of experience will want to do things their way. Whether this is true or not will be determined later, but as I said, managers want to prevent challenges as much as possible.’

But surely an older worker would be more settled and reliable than a rookie looking for a leg up to the next rung on their career ladder.

The fight for a job

It appears that initial career prospects for recent IT graduates and those graduating in the near future are not that great. The recession, lack of job openings and the abundance of candidates on the market means the sheer volume of applications employers receive is enormous and varies from the very highly skilled and experienced to the novice IT worker.

So it seems graduates are not necessarily stealing your jobs but if a graduate is capable of carrying out the role, is eager to land their first job and, more importantly, will accept a lower salary, they provide strong competition for the more experienced.

But what remains unclear is whether or not hiring lower skilled IT professionals in order to scrimp on the budget is becoming a growing trend or if this is just a temporary measure until the recession passes. And even if this is just for the interim, in the long term will this have a lasting impact? Will companies compromising the level of service for cheaper labour hinder business?

But we cannot forget that there is value in taking on graduates and normally there is a place in the market for every level. However the current conditions mean we are faced with a surplus of candidates on the market and fewer jobs.

But according to The Times, the government’s aim for 50% of school leavers to continue their education to degree level, could result in the surplus of IT professionals remaining even when the market picks up again.

So I put it to you, what can be done to help IT grads find a place in the market and how can we win what could be an ongoing battle with an excess of jobseekers in the future too?

In the current economic climate there is an abundance of IT candidates on the market all fighting for the same jobs. This has resulted in recruitment consultants and potential employers adopting a vigorous screening process in order to whittle down the applications. This could mean that even if you have years of experience in a particular area, you are more likely to get further in the recruitment process if you hold a recognised qualification.

Therefore casualties of the credit crunch that have suffered redundancy pay cuts or difficulties in finding a job are considering additional training. With the objective of increasing their knowledge, expertise and ultimately, their employability.

How many IT professionals are using the recession to upskill? Is now really a good time and will this actually help you to secure a new job? The IT Job Board conducted some research to find out.

Training offered by employers

Over the past few months there have been mixed messages in the media about companies investment in staff training. . There are reports about companies slashing training budgets, however this has been balanced with other companies publicly stating that they value training for existing employees.

A survey by The Institute of Directors revealed that 90% of directors surveyed stated that they intended to retain their IT training budgets and cut back elsewhere.

Some companies are turning to e-learning as way of cutting costs on travel and time out of the office.. An article on the BCS website, The Chartered Institute for IT, outlined the importance of training, with an emphasis on the additional green benefits of online methods. The article claims that in this climate ‘it is precisely now that sharper, finely-tuned skills are a real differentiator.’ The simple question is not ‘Do we still do training?’ but, far more pertinently, ‘How do we do it?’

How popular are additional qualifications?

As part of our research, The IT Job Board conducted a survey to establish the training needs and habits of IT professionals in the current market. 81.9% of respondents stated that they have considered studying for a new qualification since the start of the recession. So it seems that even if training is no longer offered within an organisation, IT Professionals would rather go it alone than miss out on training altogether.

But has the recession actually spurred interest amongst IT professionals in broadening their skill set?

Our research showed that only 13.7% of participants in the survey were studying or considering studying for a new qualification because it was something they had been wanting to do for some time, indicating that this could have been propelled by the downturn. Incidentally, 37% cited increasing their chances of getting a job as the reason and 31.6% cited to broaden their knowledge and skills.

David Clarke, BCS Chief Executive Officer, said: ‘Investment in IT education and skills is essential if we are to turn a nascent economic recovery into a long-term competitive advantage.’

Thus, training in a downturn can be viewed as a long-term investment in both your future career and the future of the economy.

Which qualifications are IT professionals opting for?

The IT Job Board survey identified the most popular IT qualifications that IT professionals are currently studying or considering to study:

1) Project Management (including Prince2, PMP, MSP etc)
2) Microsoft certifications (including MCSE, MCSA and MCT)
3) Cisco qualifications (including CCNA and CCNP)
4) ITIL
5) Compt TIA (including Security+, CTT+, Linux+)

It is no coincidence that the most popular choices of certifications are the most widely recognised within the industry. This shows that IT professionals are selecting qualifications that will give them more credibility within the IT sector and, in turn, keep them one step ahead of their peers in the recruitment selection process.

Interestingly, the majority of participants in our survey also stated it was more important to emphasise years experience on their CV rather than relevant qualifications in a particular area. So although a qualification may get your CV noticed by recruiters, most IT professionals feel that real-life experience is just as important and that you must have the relevant skills and experience to back up your qualifications.

Which certifications are IT professionals avoiding?

According to our survey, 21.7% of people rated soft skills as least or not very important and 31.3% were indifferent towards soft skills on their CV. The recruitment consultants we spoke to agreed with this to a certain extent, and explained that these are mainly judged through interviews.

However some consultants did mention that if you are able to display a link between these skills and technical skills in real-life experience on your CV, you would be more likely to progress further in the recruitment process.

So, is now a good time?

Peter Bayley, director of qualifications at BCS, The Chartered Institute for IT, says: “In the middle of a recession people often just hope for the best. However, with stiff competition for jobs, people need to go that extra bit further to secure employment.”

“Last week BCS, The Chartered Institute for IT, announced it was refreshing its CITP (Chartered IT Practitioner) status. Since then our new website has received more than 12,000 unique hits, proving interest among professionals is indeed high.”

From The IT Job Board’s research it appears that improving your knowledge and skills will always beneficial, especially in an industry such as IT, which is constantly changing. However, the current economic climate has made us reflect more on our careers, our skills and our development. We should therefore consider further training now more than ever, not only to increase our chances of getting a job but also to secure the future of the UK economy.