Agenda -INTELLECT – Who are we? -The UK IT market -European skills needs -International comparisons -Impact on economy and society -INTELLECTs agenda -The future -Your turn

The Information Technology Telecommunications & Electronics Association Overview of Intellect

-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 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: - 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)

UKs IT expenditure £ Billion AAGR 01/04 Personnel % Hardware % Software & Services % Miscellaneous % TOTAL % Source Holway 2001

UK IT and electronics facts Source:ONST/O £bn GVA % Emps 000 Trend Components Computing/office Telecom/broadcast Defence, auto, ind Audio-visual Software & IT servs Telecom servs Totals

Software & Services 01/04 £ Billion AAGR 01/04 Project Services % Applications % Tools % Outsourcing % TOTAL % Source Holway 2001

Market breakdown by product/ service 1999: £20,980 million Source Holway 2000

Market breakdown by product/ service ,650 million Source Holway 2000

Source Holway 2001

Gartner Hype Cycle (June 2000) Will reach plateau in Visibility Maturity TechnologyTrigger Peak of InflatedExpectations Trough of Disillusionment Source Gartner Research Note 5 June D Web Micropayments 5 – 10 years DigitalInk SyntheticCharacters AudioMining Over10 years Quantumcomputing WAP/Wireless Web Jini Speech Recognition WebtopsBluetooth Voice Portals Biometrics years Smart Cards < 2 years ASPs Voice over IP XML Enterprise Portals xDSL/Cable modems modems Java Language Plateau of Productivity Slope of Enlightenment

RankCompanyLatest FY UK SCS Growth 1IBM£1,645m13% 2EDS£1,560m11% 3ICL£910m15% 4Cap Gemini, Ernst & Young£825m5% 5CSC£754m5% 6Accenture£743m19% 7PricewaterhouseCoopers£690m14% 8Microsoft£620m15% 9Sema£587m13% 10Oracle£500m- 4% Top suppliers to the UK SCS market in 2000

Leading Suppliers of Applications Software Products and Solutions to the UK Market RankCompany1999 Revenue (£m) 1Microsoft360 2SAP140 3ICL90 4Misys79 5Sema79 6Sage75 7EDS65 8Logica59 9Oracle45 10RM Group44 Source Holway 2000

Market breakdown by industry 2000: 21.9bn Source Holway 2001

Market breakdown by industry 2004: 32.0bn Source Holway 2001

SKILLS MOST IN DEMAND Skill C Java Internet Unix Oracle SQL WindowsN T Visual Basic C HTML Source: SSP/Computer Weekly

ProfessionContentSub segmentExamplesRequired skills ICT professionals Employed in the IS department of companies or other type of ICT user organisations, staff employed at IT services, products and telecoms companies providing technology design, development, implementation, operation and support. ApplicationsApplications development, C++ Developer, C++/Unix specialist, Java analysts, SAP implementor, Functional Manager – Applications, software tester, helpdesk analyst, and call-centre operations Technology InternetworkingInternetworking engineer, WAN manager, E-business implementor, E-commerce implenter, and call-centre integrator Distributed computing Host-based computing Unix/NT administrators, 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

Demand for E-business and ICT skills in Western Europe by category in

Demand for ICT skills by country in 2000 % breakdown

European IT Expenditure in 2000 by Country Total = Euro 398bn Source Holway %

Europes IT expenditure Euro Billion AAGR 01/04 Personnel % Hardware % Software & Services % Miscellaneous % TOTAL % Source Holway 2001

Worldwide Information and Communications Technology Market in 2000 ICT Equipment33.2%£441bn Software Products9.6%£128bn IT Services18.7%£249bn Carrier Services38.5%£511bn Total100%£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, asps

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, ,

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