IT industry coming out of Global Financial Crisis

According to experts at the National Computing Center (NCC), the IT and computing industry in the UK is yet to fully recover from the effects of the global recession.  As a result of the decline from the recessionary period, major IT firms bought out the small competitors and most companies are more likely to purchase services than spend their money on IT.  The experts admit that even though the industry is always bullish, major shifts are expected in the way corporate buy IT because; as outsourced, or cloud computing matures in availability, flexibility and security; end users will be buying more services and less in IT.


A report by e-skills UK revealed that whereas investments into the IT hardware and software had increased in the last three months, the overall investment indicators from the private sector declined for the sixth consecutive quarter. Consequently, e-skills reported that the number of IT professionals working in the UK dropped by 20,000 to 1,041,000 in the period between the last quarter of 2009 and the first quarter of 2010.


On the average, statistics show that about £422.2 million is spent on mobile applications by residents of the UK.  PC shipments in Western Europe increased by 19.4% to 18.1 million units in the first quarter of 2010 compared to 15.12 million units for the same duration in 2009. Major IT and computing firms in the UK led in this investment boom with companies like Acer taking the lead. According to Gartner, a UK IT research Firm, PC shipments in the UK increased by 14.5% to 3.35 million units when compared to 2.94 million units for the same period in 2009.  In the continental market share, HP UK clinched the top spot with a growth of 6.3%, accounting for a market share of 21.1% while Dell and Acer exhibited a 1.6% and 25.5% growth, with a share of 18.5% and 16.4% respectively. Acer gained the top acclaim in the UK with 4.2 million units in the first quarter of 2010, translating to a market share of 23.4%, while HP took second place with a market share of 22.6%. Dell, Asus and Toshiba had a market share of 10%, 7.9% and 5.9% respectively.


Regardless, in other Industry related news, CIOs are warning that the public sector in the UK runs a risk of losing talented IT staff due to the pending salary freezes and uncertainty over the new coalition government’s plan to tackle the deficit.