Press Release

Intellect, the UK technology trade association, will today publish a health-check covering performance of the technology industry and the value of its contribution to the UK economy. It also identifies six areas the government and the sector need to focus on to ensure sustainable future growth.

The health-check report states that the technology industry is thriving despite the current credit crunch and that its importance to the economy is growing.  The industry is measured against four key indicators and in each case given a score out of 100:

Growth - 32 
Customer value - 78
Innovation - 74 
Reputation - 64

The report also evaluates the importance of the technology sector to the UK, concluding that it is a cornerstone of the economy. One in 20 of the UK workforce is an IT professional and the competitiveness of the UK is underpinned by a strong technology sector.

Sean Finnan, President of Intellect explains: “The health of the UK technology sector is key to the country as a whole: to the economy, to business, to the public sector and to citizens.  Our industry by itself contributes 10% of UK GDP but its indirect contribution through other industries is much greater. Creating the conditions that make technology companies choose to invest in the UK is an important part of the economic success of the country.”

The report states that government and the industry need to pay careful attention to six key booster areas, otherwise it will not continue to grow and will not reach its full potential. The six boosters identified in the report are:

• More skills in the workforce   
• Higher professional standards in the sector
  Improved trust and confidence in the sector 
• Better exploitation of innovation
• Better communications infrastructure  
• Improved relationship with other sectors

Finnan continues: “The UK technology sector is at a pivotal point. The optimism of recent years has lessened. In aggregate we are seeing opportunities for growth emerge more quickly, but also disappear more quickly, when the country and the sector is unprepared to exploit them.  Focusing on the six boosters we have identified is essential if we are to continue to attract technology companies to operate in the UK.”

Unlike other sectors, there is little economic data available for the technology industry. Intellect believes that this report presents a unique, consolidated view of the industry’s current performance. The report, written by Intellect, is based on third party financial data and the experience and opinions of Intellect’s leader’s network.