Agenda
- INTELLECT – Who are we?
- The UK IT market
- European skills needs
- International comparisons
- Impact on economy and society
- INTELLECT’s agenda
- The future
- Your turn
Overview of Intellect
www.intellectuk.org
The Information Technology Telecommunications & Electronics Association
- The Background to Intellect
- Who Benefits from Membership
- Intellect Influence & Representation
- Campaigns
- Knowledge & Advice
- Networking Opportunities
- Business Support Services
- Marketing & Promotion Services
- Summary
INTELLECT & FEI merged to form Intellect in May 2002
Intellect is committed to improving the environment
in which our members do business, promoting their
interests and providing them with high value
services
1000+ member companies
Membership spans large and small companies
including:
ARM, BAE SYSTEMS, BT, CMG, EDS, IBM, Intel,
Logica, Motorola, Microsoft, Nokia, Philips, Sony
Membership is for the company and its employees.
Intellect provides support services for the
- CEO
- Finance & Commercial Department
- Sales & Marketing Department
- HR Department
- Legal Department
- Public Affairs Department
Supply side sectors:
- IT Software & Services
- Telecommunications
- Consumer Electronics
- Components & Manufacturing
Market focused sectors:
- Public: Defence, Central & Local Government,
Healthcare, Justice & Emergency
- Private: Banking & Finance, eCommerce, New
Technologies, Testing, Utilities
Influence and Representation
Examples
- Cabinet Office, DTI, Home Office, Inland
Revenue,
- Ministry of Defence, NHS, OFTEL
- Office of Government Commerce, the Radio
Communications Agency and many other public
and private sector bodies.
Campaign priorities
- Broadband Services
- Digital TV
- Manufacturing
- WEEE
- R&D Tax Credit
Other major issues
- Corporate Social Responsibility
- Digital Rights Management
- OFCOM
- Spectrum Broadband
- Innovation
We provide market and sector knowledge & advice
through:
-Email bulletins
-Market intelligence reports
-Benchmarking surveys
-Business guidance publications
-Business briefings
We enable members to meet for personal & professional
gain
-Intellect connects 6000 senior executives each year
-Intellect runs 300 events annually
-Intellect events enable members to generate business
contacts, build partnerships & share expertise
We provide you with business support services to save
members effort, time and money
- Weekly sales leads
- Industry training courses
- Free legal helpline
- Escrow Service
- Commercial benefits including insurance schemes & flexible
benefits
- International services including a trade show calendar & managed
missions service
We help to raise members’ profiles in the
industry and to customers through:
• Free product and service directory listings
• PR support and press opportunities
• Speaker platforms & opportunities
• Co-branding opportunities
• Joint events
• An online member database promoted to the user
community
In Summary
Intellect Provides:
- Effective Representation
- Networking Opportunities
- Business Support Services
- Marketing & Promotion Services
- Industry Information & Advice
Questions?
The UK IT Market
(and international comparisons)
UK’s IT expenditure
£ Billion 2000 2001 2004 AAGR
01/04
Personnel 13.3 13.9 16.0 4.7%
Hardware 14.8 15.6 18.2 5.4%
Software & Services 21.9 23.8 32.0 10.4%
Miscellaneous 4.7 4.9 5.3 3.0%
TOTAL 54.7 58.1 71.6 7.2%
Source Holway 2001
UK IT and electronics facts
Source:ONS T/O GVA Emps Trend
£bn % 000
Components 6.3 .25 44 -
Computing/office 15.8 .27 56 -
Telecom/broadcast 15.0 .51 68 -
Defence, auto, ind 6.2 .32 73 +
Audio-visual 4.8 .12 33 -
Software & IT servs 40.6 2.85 573 -
Telecom servs 41.4 2.15 238 +
Totals 130 6.48 1085 -
Software & Services 01/04
£ Billion 2000 2004 AAGR
01/04
Project Services 8.46 12.34 +10.4%
Applications 3.20 4.21 +7.4%
Tools 1.12 1.54 +8.4%
Outsourcing 6.92 11.62 +13.9%
TOTAL 19.7 29.71 +11.2%
Source Holway 2001
Market breakdown by product/ service
4% 4%
4% System Software
Hardware Maint
28% Project Services
35%
Tools
Appln Software
Outsourcing/Apps Mgmnt
21%
4% Value-added Services
Source Holway 2000 1999: £20,980 million
Market breakdown by product/ service
2%
11% 2% System Software
Hardware Maint
Project Services
32%
Tools
32%
Appln Software
Outsourcing/Apps Mgmnt
4%
17% Value-added Services
Source Holway 2000 2003 35,650 million
UK Software and IT Services
Industry Growth in Real Terms
(excluding system software and hardware
maintenance)
25%
21%
20% 19%
15% 14% 14%
10% 9% 9%
8%
7% 7%
5%
0%
1996 1997 1998 1999 2000 2001 2002 2003 2004
Source Holway 2001
Visibility Gartner Hype Cycle (June 2000)
ASPs Will reach plateau in
WAP/Wireless Web Webtops < 2 years
Voice Portals Bluetooth 2 - 5 years
Biometrics Enterprise Portals 5 – 10 years
Over10 years
Digital
Ink
Synthetic Jini Java Language
Characters
Smart Cards
Audio xDSL/Cable
Mining XML modems
Speech Recognition
Quantum 3-D Web Voice over IP
computing
Micropayments
Peak of
Technology Trough of Slope of Plateau of
Inflated
Trigger Disillusionment Enlightenment Productivity
Expectations
Source Gartner Research Note 5 June 2000 Maturity
Top suppliers to the UK SCS market in 2000
Rank Company Latest FY Growth
UK SCS
1 IBM £1,645m 13%
2 EDS £1,560m 11%
3 ICL £910m 15%
4 Cap Gemini, Ernst & Young £825m 5%
5 CSC £754m 5%
6 Accenture £743m 19%
7 PricewaterhouseCoopers £690m 14%
8 Microsoft £620m 15%
9 Sema £587m 13%
10 Oracle £500m - 4%
Leading Suppliers of Applications Software Products
and Solutions to the UK Market
Rank Company 1999 Revenue
(£m)
1 Microsoft 360
2 SAP 140
3 ICL 90
4 Misys 79
5 Sema 79
6 Sage 75
7 EDS 65
8 Logica 59
9 Oracle 45
10 RM Group 44
Source Holway 2000
Market breakdown by industry
18% Manufacturing
32%
Finance
Public Sector
21%
Telecom/Utility
10%
19% Retail/Transport
Source Holway 2001
2000: 21.9bn
Market breakdown by industry
17% Manufacturing
34%
Finance
Public Sector
20%
Telecom/Utility
10%
19%
Retail/Transport
Source Holway 2001 2004: 32.0bn
SKILLS MOST IN DEMAND
2000 1999 1998 1997 1996 1995 1994 1993 1992 Skill
1 1 3 2 2 3 4 15 - C++
2 8 13 - - - - - - Java
3 14 25 - - - - - - Internet
4 4 4 1 1 1 1 2 1 Unix
5 2 2 3 4 4 6 5 4 Oracle
6 6 6 8 9 9 8 9 12 SQL
7 3 1 4 7 14 - - - WindowsN
T
8 5 5 7 8 8 10 17 69 Visual
Basic
9 7 7 5 3 2 2 1 2 C
10 21 28 - - - - - - HTML
Source: SSP/Computer Weekly
Profession Content Sub segment Examples Required skills
ICT professionals Employed in the IS department Applications Applications development, Technology
of companies or other type of C++ Developer, C++/Unix
ICT user organisations, staff specialist, Java analysts,
employed at IT services, SAP implementor,
products and telecoms Functional Manager –
companies providing Applications, software
technology design, tester, helpdesk analyst,
development, implementation, and call-centre operations
operation and support.
Internetworking Internetworking engineer,
WAN manager, E-business
implementor, E-commerce
implenter, and call-centre
integrator
Distributed
computing
Host-based Unix/NT administrators,
computing server consultants,
escalation specialist, PC
Desktop Support Engineer,
Technical Support Analyst,
and Customer Support
Specialist
Technology
neutral
source EITO
Demand for E-business and ICT skills in Western Europe
by category in 2000
2000
2003
10%
12%
11% ICT skills
E-business
skills
Call centre 29%
59%
79%
Demand for E-business and ICT skills in Western Europe
by category in 2000
2000
Internetworking
2003
Slice 6
9% 8%
Host-based Internetworking
4% 3%
Technology Host-based
neutral 8% Applications
7% 37%
Applications
53%
Technology
neutral
Distributed 15%
27%
Distributed
29%
Demand for ICT skills by country in 2000 % breakdown
Germany
21%
Other
29%
France
Spain 17%
5%
Italy
10%
UK
18%
Total = Euro 398bn
European IT Expenditure in 2000 by Country
3% 2% 1%
5%
Germany
4% 27%
UK
5%
France
Scandinavia
Italy
8% Netherlands
Switzerland
Spain
Belgium
9%
Austria
16%
Portugal
20%
16%
Source Holway 2001
Europe’s IT expenditure
Euro Billion 2000 2001 2004 AAGR
01/04
Personnel 105.5 109.3 121.7 3.6%
Hardware 86.2 89.0 97.2 3.0%
Software & Services 162.9 182.6 260.0 12.5%
Miscellaneous 43.0 44.6 48.8 3.1%
TOTAL 397.5 425.6 527.7 7.4%
Source Holway 2001
Worldwide Information and Communications
Technology Market in 2000
ICT Equipment 33.2% £441bn
Software Products 9.6% £128bn
IT Services 18.7% £249bn
Carrier Services 38.5% £511bn
Total 100% £1,328bn
Source Holway 2001
The future (last year)
- Revenues, profits, cash, are kings
- IT must deliver benefit
– economic
– social
- Internet realistically placed
- European market growth
- From products to services, transaction-based
charging, asp’s
The future (now)
- Revenues, profits, cash (that should be CASH!!)
are kings
- Survival
- IT must deliver benefit
– economic
– social
- Internet realistically placed
- Volatility, uncertainty esp telecomms
So what?
Impact IT can have
- improve productivity and raise service levels
– private sector
eg banks, manufacturing, insurance
– public sector
eg hospital, schools, military
- magnifies trust and ethics problems
- social
– eg text messaging, email,
Role of governments
- Frameworks and rules of the game
– nationally
– internationally
- Users and exemplars
– e-readiness
- Goal setters
Still excellent opportunities
for you
Case studies
A. Public sector project goes wrong
B. Large IT services co. loses its way
C. Food retailer goes .com
D. eStart-up