Fibre optic rollout 'vital for digital economy'

The UK's prospects of being one of the world's leading digital economies will be strengthened by the widespread rollout of fibre optic broadband, according to an expert.

A recent report by cloud optimisation services provider Akamai Technologies claimed that the UK's cities are failing to match the internet connection speeds offered by rivals across the globe.

Commenting on the UK's chances of becoming a digital economy, broadband.co.uk editor Edd Dawson said that the widespread adoption of superfast internet is the only way this can be achieved in the long term.

"There may still be hope for a more solid future, as the 2Mbps target was almost not worth having as it was just a short-term sticking plaster anyway. The real hope for the long term is in universal fibre broadband provision," he explained.

However, Mr Dawson also pointed out that the new government has scrapped the previous administration's target of universal 2Mbps broadband by 2012, but claimed that many of the industry's members considered this move to be inevitable.

Culture, media and sport secretary Jeremy Hunt announced earlier this month that the 2Mbps broadband target will be pushed back to 2015 due to a lack of funding for the earlier goal.
 

CIPD welcomes end of default retirement age

Government plans to scrap the UK's default retirement age have been well received by the Chartered Institute of Personnel and Development (CIPD).

Yesterday (July 29th), employment relations minister Edward Davey launched a consultation into proposals to end the entitlement of companies to force workers to retire when they reach 65.

The plans suggested that the default retirement age could be phased out by October 2011, following a six-month transition phase.

CIPD diversity adviser Dianah Worman said her organisation is "greatly encouraged" by the government's plans, as research has shown that many employees would like to work past the standard retirement age.

"With the allowed transition period of six months and adequate support, employers will be able to continue to benefit from retaining the knowledge, skills and experience of older workers," she commented.

Additionally, Ms Worman claimed that allowing people to work past the age of 65 will allow firms to benefit from better talent management processes and higher productivity.

The Recruitment & Employment Confederation also welcomed the proposals, but suggested it may reduce the number of opportunities open to younger jobseekers.
 

Govt IT outsourcing changes 'will have a strong effect'

The government's decision to renegotiate its IT outsourcing contracts will have a "significant" impact on the industry, an expert has claimed.

Last week, technology analyst Ovum revealed that 35 public sector outsourcing contracts could be renegotiated in the coming years, as the government has announced a £100 million cap on spending for each project in this area.

Michael Dean, head of marketing at the National Computing Centre, commented: "If the government takes a hardline approach through either non-renewal or renegotiation, outsourcers will be forced to find alternative revenue streams in a market which, according to recent reports, is in decline."

In addition, the expert claimed that outsourcing providers may attempt to mount legal defences to government attempts to renegotiate their contracts, which could lead to delays in the services that are reliant on them.

The Ovum research suggested that not all the 35 contracts valued at £100 million or more will be severely changed, but there is enough scope in the proposals for the government to make significant cost savings.
 

Cyber Security Challenge 'is good for the industry'

Plans to attract more people into cyber security jobs have been welcomed by the Internet Services Provider's Association (ISPA).

Launched earlier this week, the Cyber Security Challenge is a series of online games and competitions to identify the rising stars of the IT security industry and is designed to make more people consider a career in the area.

ISPA secretary general Nicholas Lansman claimed the challenge will be useful in attracting new talent to the industry and highlighted the importance of having high standards of IT security.

"The work that cyber security professionals do is incredibly important and ISPA welcomes the effort to encourage more people in to this profession," he added.

In addition, Mr Lansman called on the government to channel more resources into ensuring that people are aware of the dangers which can be found online and are able to use the internet safely.

The 30 winners of the Cyber Security Challenge will receive a range of prizes, including places at the Detica Academy and various other training courses.
 

London Olympics 'still creating opportunities'

Small enterprises, such as IT contractors, should attempt to chase business opportunities created by the 2012 London Olympics Games, it has been suggested.

Lloyds Banking Group pointed out that the event starts in less than two years and said small operators should be trying to search for any remaining contract opportunities.

Research carried out by the organisation found that small enterprises are less appreciative of the work created by the Games, with only 51 per cent saying they will have a positive effect on business compared to 70 per cent of larger companies.

Chris Daniels, head of Lloyds Banking Group's London 2012 business team, commented: "We are approaching the home strait. London 2012 is just two years away but for the UK's small businesses, there is still time to join the race."

He also noted that contracts are open to small firms and contractors across the UK, not just those based in London.

According to the London Organising Committee of the Olympic Games, more than 1.4 million people have already registered to buy tickets for when they go on sale next year.
 

Govt launches new digital comms plan

The government has launched new plans to boost the UK's digital infrastructure, which could create IT jobs.

Communications minister Ed Vaizey unveiled a range of measures which will allow the country to benefit from improved mobile broadband coverage and the next generation of wireless services.

Under the new programme, the UK's radio spectrum will be modernised, to allow operators to extend the rollout of mobile broadband and offer their customers the latest technologies.

Mr Vaizey commented: "We want the UK market to remain at the fore of delivering devices like the iPad and smartphones but they need the networks to continue to improve and increase services."

Among the plans are for Ofcom to perform a combined auction of 2.6GHz and 800MHz spectrum, as well as an investigation into future 3G and 4G markets.

Recent research from Ofcom found that there has been an increase in average actual broadband speeds in the UK, but claimed many customers are still not receiving those advertised.
 

Diversity 'important for UK recruitment'

The recruitment sector should attempt to promote diversity in the UK's workplaces, an expert has suggested.

Rachel Krys, campaign director at the Employers Forum on Age, claimed that "unspoken age discrimination" is still a common problem in the UK, as many 50 to 60-year-olds claim that it is hard to find a new job in the current employment market.

However, she called on the recruitment industry to change this by attempting to find a more diverse mix of candidates for their clients, commenting: "I think the recruitment industry has struggled to realise that a team made up of identikit people is not the strongest option."

Ms Krys also claimed that it can be detrimental to a business' overall performance if they only employ people of a similar age.

A recent report by the Department of Communities and Local Government claimed that age discrimination is the most common form of prejudice found in the UK's labour market, with three per cent of people believing they have been turned down for a job because of their age.
 

IDC: SaaS revenues set for growth

The worldwide software-as-a-service (SaaS) market's revenue is expected to expand at five times the rate of the traditional packaged software, which may create new IT jobs.

Research carried out by IT industry analyst IDC showed that the total SaaS market saw revenues reach $13.1 billion (£8.5 billion) in 2009 and predicted this will grow by 25.3 per cent a year to hit $40.5 billion by 2014.

In addition, the report claimed that by 2014, around 34 per cent of all new enterprise software purchases will be through SaaS.

Robert Mahowald, vice-president of SaaS and cloud services research at IDC, said that the innovation has now become part of the mainstream software market and is part of most companies' technology planning.

He commented: "Enterprise IT plans are rapidly shifting to accommodate the growing choices for sourcing most or all IT software functions, from business applications to software development and testing, […] as SaaS services."

Last week, IT industry researcher Gartner claimed that revenues in the enterprise SaaS sector will increase by 14.1 per cent over 2010 to reach more than $8.5 billion.
 

Economic improvement 'is welcome news for jobs'

The improvement in the UK's economy is "good news" for people seeking jobs, an expert has claimed.

Recent figures from the Office for National Statistics showed that the UK's gross domestic product grew by 1.1 per cent over the second quarter of 2010, rising from a rate of 0.3 per cent in its opening three months.

Kevin Green, chief executive of the Recruitment & Employment Confederation (REC), welcomed the report and pointed out that the economic growth has surpassed previous estimates.

"The fact that we have the fastest quarterly expansion since 2006 will improve business confidence and should encourage firms to start hiring new staff," he commented.

Mr Green added that the recruitment industry has reported a growing demand for staff in recent months, although he noted that the expected job losses in the public sector will eventually need to be dealt with.

Last week, a report by CV Screen reported that vacancies for IT jobs increased by 47 per cent during the second quarter of 2010 when compared to the same quarter in the previous year.
 

CVs 'need to be tailored to each role'

People seeking new IT jobs should draft their CV to meet the requirements of each role, an expert has suggested.

Recent research from MyWorkSearch found that more than one-third of jobseekers have sent out over 100 applications, but 32 per cent have yet to attend more than one interview.

Commenting on the findings, recruitment expert Keith Potts claimed that sending out an untargeted CV will often annoy potential employers and reduce the chances of jobseekers being offered an interview.

"Remember to be targeted in your applications, don't think that sending your CV out to hundreds of irrelevant jobs will increase your chances," he advised.

The expert admitted that this process will take more time than dispatching a general CV, but claimed that this effort will ultimately be worthwhile.

Mr Potts also recommended that jobseekers use their covering letter and resume to highlight how their skills and experience make them suitable for the position.
 

Firms 'holding back IT recruitment'

New research has shown that many companies are not planning to reinstate IT positions which were lost due to the recession.

A study published by Esteem Systems found that only three per cent of IT managers intend to hire people to fill the skills gap created in their organisation during the economic downturn.

However, 64 per cent of firms said that they do plan to invest in IT to help improve their business as the economy starts to recover.

Alastair Kitching, chief operating officer at Esteem Systems, commented: "Our survey showed that businesses are understandably being cautious with regards to investing in recruitment, despite the fact that we're coming out of recession."

He added that despite the recruitment freeze, many companies still appreciate the important role that IT has to play in their recovery and are putting it at the centre of their plans.

Recent research from CV Screen claimed that IT vacancies rose by 47 per cent during the second quarter of 2010, when compared to the same period in the previous year.
 

Businesses 'improving UC&C adoption'

Firms look set to increase their use of unified communications and collaboration (UC&C) technologies, it has been claimed.

Writing on cio.com.au, Optus Business acting managing director Rob Parcell cited research from his company showing that organisations are using the communications tools to boost their businesses' competitiveness.

"UC&C provides both an effective and efficient framework for evolving business communication - particularly for organisations with multiple locations and remote workers," he commented.

Mr Parcell also said that the different elements of UC&C have already developed a good reputation in the business community and this has helped to bolster the popularity of the platform.

In addition, the expert wrote that tools such as instant messaging, mobile devices, unified messaging and video conferencing are seeing a surge among enterprises and governmental organisations as they seek to improve the efficiency of their communications.

Last week, Forrester principal analyst Elizabeth Herrell wrote in the company's blog that 62 per cent of businesses are attracted to UC&C because it allows remote workers to remain connected.
 

Enterprise SaaS market 'set for revenue growth'

Global revenues in the enterprise software-as-a-service (SaaS) market are expected to see significant growth during 2010, it has been claimed, which may create new IT jobs.

New research from IT industry analyst Gartner claimed that revenues in the sector will increase by 14.1 per cent over the year, rising from the $7.5 billion (£4.9 billion) reported in 2009 to more than $8.5 billion.

The study also pointed out that SaaS revenues have grown from accounting for around ten per cent of the total enterprise software market in 2009 to more than 16 per cent today.

Sharon Mertz, research director at Gartner, commented: "After a decade of use, adoption of SaaS continues to grow and evolve within the enterprise application markets."

She also claimed that an increasing number of businesses will move towards SaaS offerings such as cloud computing and platform-as-a-service as they have to maximise value from shrinking capital budgets.

Earlier this month, research by industry analyst IDC claimed western European firms will spend almost $204 billion on external IT services this year.
 

PCG 'delighted' with OTS launch

The launch of the new Office of Tax Simplification (OTS) has been welcomed by one UK freelancing organisation, which may interest IT job applicants.

Earlier this week, chancellor George Osborne and exchequer secretary David Gauke confirmed that the office will be chaired by former Treasury minister Michael Jack and complete a thorough review of the UK's small business tax regime, including IR35.

John Brazier, managing director of freelancing group PCG, said his organisation is "delighted" that the OTS has been formally established and applauded its focus on the IR35 contractor tax rules.

"We will be working to ensure that this iniquitous tax will go and that all freelancers and small businesses will be able to operate within a fairer and more transparent tax system," he commented.

Last month, Mr Brazier said that IR35 has caused many problems for freelance workers over the ten years since it was introduced and called on the government to identify a suitable and fair replacement for the rules.
 

Data quality 'needs to be everyone's responsibility'

Companies have to strive to create a culture which is focused on data quality, experts have suggested, which may see more IT jobs created.

Recently, Granite Falls Consulting president Danette McGilvray told SearchDataManagement.com that companies can improve their data quality by making this the responsibility of all their workers.

She also recommended that businesses train their staff in how poor data quality practices can lead to wider problems for other employees and the organisation as a whole.

Commenting on the issue, Dylan Jones, founder and editor of Data Quality Pro, said the first stage in improving data quality is for companies to identify any problems they already have.

"Until you can find an example of where data quality is hitting the bottom line in a significant way, you may fall at the first hurdle," he explained.

Mr Jones added that firms should attempt to solve this problem and show that improving data quality can lead to a quick return on investment, before making sure that the entire workforce becomes committed to tackling the issue.
 

UK signs space agreements with US and Russia

Organisations in the UK, the US and Russia have announced new deals to co-operate in the space industry, which may create new technology-based jobs.

The UK Space Agency and Nasa have agreed to identify new areas in the field of space exploration where they can work closer together, after already collaborating on a number of projects.

Meanwhile, the agency and the Russian Federal Space Bureau have signed a Memorandum of Understanding to address issues such as customs and tax rules which are stopping the two countries from working together on space projects.

Announcing the moves at the Farnborough Airshow, space minister David Willetts commented: "These agreements show our international partners view Britain as a major player in the space industry. They will help bring new opportunities for British innovators."

Back in March, it was confirmed that the £40 million International Space Innovation Centre will be established at the Harwell Science and Innovation Campus to support the UK's space industry.
 

European Commission confirms research funding

The European Commission has announced an investment of almost €6.4 billion (£5.4 billion) in scientific research and innovation across the continent, which may benefit IT jobs.

Commissioner Maire Geoghegan-Quinn revealed that the package will be used to fund a range of projects looking at issues such as energy and food security, climate change, health and the ageing population.

"This European package will contribute to new and better products and services, a more competitive and greener Europe, and a better society with a higher quality of life," she commented.

Around €600 million of the funding will be allocated to IT projects which cover areas such as digital content technologies, next generation network and service infrastructures, robotic systems and electronic components.

In addition, over €400 million will be used to fund initiatives looks at how IT can be used in response to issues like the creation of a low carbon society and sustainable factories.

Recently, the Economist Intelligence Unit ranked the UK's digital economy as the 14th best across the globe, which is a fall of one place on the position it held last year.
 

IT vacancies 'continue to rise'

The number of IT job vacancies has shown a significant increase during the second quarter of 2010, new figures have revealed.

A report by CV Screen explained that IT vacancies rose by 47 per cent during the three-month period when compared to the same quarter in 2009.

In addition, the research showed that the number of jobseekers applying for each role decreased from 295 to 187, which is a fall of 36 per cent, during the same period.

Matthew Iveson, managing director of CV Screen, said that the decrease in the number of applicants per vacancy could be due to IT jobseekers becoming more selective in the roles they are considering.

"The first half of 2010 has proven to be a key time in the economic recovery. We are fully optimistic that the second half of the year will continue to be just as encouraging," he commented.

This week, a report by pre-employment screening company Powerchex showed that there has been a 320 per cent increase in the number of offers for IT contractors in the financial services industry.
 

Hutton public sector pay review calls for evidence

An independent review examining the pay offered by the public sector is asking for input from interested parties.

The Hutton Review of Fair Pay in the Public Sector has issued a call for evidence on how more fairness can be created in the pay scales for workers in local and central government.

Economist and commentator Will Hutton, who will conduct the study, commented: "Ahead of my interim report in the autumn, I will be developing a definition of fair pay and exploring the benefits of fairness in pay and in the processes by which pay is determined."

Mr Hutton, who is the executive vice chair of the Work Foundation, also explained that he is currently looking at the issue of "pay dispersion" in the public and private sectors, as well as the links between the two.

The review was announced by chancellor George Osborne in June and its final report will be due in March next year.

Among its aims is to make recommendations that will prevent those at the highest levels of the public sector from earning over 20 times more than those at the bottom.
 

UK employees 'lack financial protection'

New research has revealed that British workers have not prepared themselves financially for unexpected events, which may concern those in the IT trade.

A poll carried out by financial services provider Unum found that 21 per cent of UK employees, or around 5.5 million people, do not have any back-ups such as cash savings or income protection insurance.

The research also showed that employees in Wales and the north-east are the most at risk, with 32 per cent and 24 per cent respectively having no financial protection in place.

In addition, the survey discovered that the average worker in the UK could only survive for four weeks without full pay if they lost their job or suffered some form of injury or illness.

Marco Forato, chief marketing officer at Unum, said: "It's really quite concerning to see that so many people are living on a knife edge when it comes to financial protection."

Recent research by Unum and manufacturers' organisation EEF claimed that 44 per cent of workers did not take a single day of sick leave during 2009.
 

Mobile app downloads 'to hit 25bn in 2015'

The number of consumer-oriented handset downloads onto smartphones is expected to grow significantly over the coming years, which may create new IT jobs.

A new study published by Juniper Research claimed that consumer mobile app downloads will increase from under 2.6 billion in 2009 to surpass 25 billion by 2015.

However, the research said that firms should not mimic Apple's App Store unless they have a strong customer base and can convince developers to supply them with unique content.

Report author Dr Windsor Holden explained: "Apple has been able to achieve several billion downloads from a comparatively small handset base because customers are buying the iPhone for the apps. That's not been the case with other handsets."

In addition, the study found that the prevalent business model in the mobile apps market is freemium, which features applications that are free at the point of sale and then require premium content upgrades.

At the start of the month, research by IT industry analyst Frost & Sullivan claimed that 85.4 million smartphones will be shipped in the western European market by 2014.
 

Videogame fund 'does not excuse loss of tax break'

The new fund for small firms building videogame prototypes does not make up for the industry's withdrawn tax breaks, it has been claimed.

Last week, culture minister Ed Vaizey told the Develop videogames conference in Brighton that a £2 million fund will be targeted at small companies and overseen by the University of Abertay in Dundee.

However, in the emergency Budget in June 22nd, chancellor George Osborne announced that tax relief will not be extended to the industry.

Commenting on developments, GamesIndustry.biz managing editor Phil Elliott said that the fund is likely to be well-run, but added that "it's difficult to see this as any kind of softener to the loss of any overall tax break".

Mr Elliott also pointed out that the UK film industry has retained its tax benefits and claimed that the differing treatment of the two creative sectors could be seen as "double standards" on the government's part.

In addition, the expert called for the government to maintain its commitment to developing the country's digital infrastructure, to help the UK retain its position as a world-leader in the videogames industry.
 

Social networks 'adding to firms' malware risks'

IT security managers have been warned about the malware dangers created by social media use in the workplace.

Rik Ferguson, solutions architect at IT services provider Trend Micro, said that it is becoming more common for employees to use social networking websites when in the office.

He also pointed out that many businesses are starting to use the technologies in their marketing strategies, as they can offer new ways to connect to customers and deliver advertisements.

However, Mr Ferguson added that this can lead to companies opening themselves up to new IT security threats, explaining that some pieces of malware have been specifically designed to spread through social networks.

"There's a risk that if you are not effectively screening http traffic as it comes into your organisation for malicious content, then this sort of thing could easily get through your perimeter," the expert commented.

Recent research from Trend Micro found that 24 per cent of employees now use social media in the workplace, growing from 19 per cent two years ago.
 

IT contractors 'seeing opportunities in financial services'

IT contractors are seeing their employment prospects improve in the UK's financial services sector, new research has shown.

A report by pre-employment screening company Powerchex revealed that the number of employment offers for technology work in the industry jumped by 320 per cent over May to June.

The firm said the increased recruitment of IT contractors by financial companies shows that they are preparing to grow their operations now the economy has entered into recovery.

Alexandra Kelly, managing director of Powerchex, added: "Recruitment in the financial sector has generally flattened in the last quarter, but IT contractor hiring shows signs of another round of optimism in investment banking this summer."

She also claimed financial services businesses held back on their recruitment until the new government made its emergency Budget announcement on June 22nd, but noted that they appear to now be willing to take on more workers.

This month, a report from the Confederation of British Industry predicted that the coming quarter will see more financial firms grow their workforces.
 

Superfast broadband 'vital for UK economy'

Establishing a superfast broadband network is essential to the UK's economic success, the country's culture secretary has claimed.

Jeremy Hunt said that he wants the UK to have the leading superfast broadband infrastructure in Europe by the end of the current parliament and hopes that it will be among the best in the world.

"Our broadband network is as fundamental to Britain's success in the digital era as the railway network was in the industrial age," he commented.

The Department for Culture, Media and Sport added that Broadband Delivery UK is instrumental in helping the country achieve this goal and will work to identify the barriers which are preventing the rollout of superfast internet in rural and remote communities.

In addition, the group will examine how publicly-owned broadband networks can be used to spread superfast internet across the UK and what regulatory changes are needed to assist the rollout.

Earlier this week, UK digital champion Martha Lane Fox unveiled her manifesto to grant every adult in the country access to the internet.