1. John Higgins Director General Computing Services & Software Association john.higgins@cssa.co.uk

2. Agenda CSSA – Who are we? The UK IT market International comparisons Impact on economy and society CSSAs agenda The future Your turn

3. Tina Hendzel Regional Business Development Executive Computing Services and Software Association Tina.hendzel@cssa.co.uk

4. So who are we? CSSA is the membership body representing 85% of the UKs software and IT companies (by turnover) Nearly 800 companies belong to CSSA

5. Proposition to Members How we increase their business? How we promote them? How we save them money? How we represent them? How we keep them informed? Who we introduce them to?

6. Increasing their Business European journal –Public sector leads Sales Opportunities –FITS service –Commercial Unlimited exposure to contacts within member companies Certificate – value of belonging…..

7. Promoting them Reference book & online database Exhibitions & Trade Missions Healthcare/ Utilities Congress/CEBIT Public Relations 100 journalist calls & enquiries per month: Trade & national press Broadcast media

8. Saving them Money PI Insurance - 25% discount Discounted Flexible Benefits: Travel, Pensions, Life Assurance, Income Protection, Private Medical Ins. Training courses Free Legal Advice

9. Representing them Public affairs and representation – influencing policy – representation at Government level Research & development projects –ASP –Broadband –Getting it right for Government –Information Security

10. Keeping them Informed Special interest groups –Business sector/function –Public/Private sector Educational events –ASP / Data Protection/ IT Skills Shortage / Employment Law & HR Issues –businessgrowth series –IT Marketing Conference Publications –Contract guidelines –Website content and the Law

11. Introducing them Industry lunches/dinners Partnering event Seminars Hospitality days - (Corporate Events / Industry Ball)

12. Creating the environment for success

13. Helping them succeed

14. Questions?

15. CSSA Leads Represents Provides a network Runs interest groups Produces information Offers services

16. Highlights Industry affairs – CSSA content Events deliver content New services Membership Marketing & Communications Taking CSSA regional 20% growth, reduced overheads and balanced scorecard measures

17. The UK IT Market (and international comparisons)

18. UKs IT expenditure £ Billion200020012004AAGR 01/04 Personnel13.313.916.04.7% Hardware14.815.618.25.4% Software & Services 21.923.832.010.4% Miscellaneous4.74.95.33.0% TOTAL54.758.171.67.2% Source Holway 2001

19. Software & Services 01/04 £ Billion20002004AAGR 01/04 Project Services8.4612.34+10.4% Applications3.204.21+7.4% Tools1.121.54+8.4% Outsourcing6.9211.62+13.9% TOTAL19.729.71+11.2% Source Holway 2001

21. Source IDC/Microsoft

22. SKILLS IN SHORT SUPPLY Permanent SkillsTemporary/contract skills CAD technicians Electronic engineers Hardware engineers IT developers Programmers (Java, Cisco, CIEE, C++) Skilled IT technicians Software engineers Telecom engineers Web developers IT technicians Programmers (Java, e, VC++) Telecom engineers Web developers Source:REC Report on Jobs August 2000

23. SKILLS MOST IN DEMAND 200019991998199719961995199419931992Skill 113223415-C++ 2813------Java 31425------Internet 444111121Unix 522344654Oracle 6668998912SQL 7314714---Windows NT 855788101769Visual Basic 977532212C 102128------HTML Source: SSP/Computer Weekly

24. Top 10 players in UK ITSA market by UK revenues 2000 RankCompany UK ITSA Revenues Most Recent FY £m Previous FY £m Growth 1 2 3 4 5 6 7 8 9 10 SThree Group Delphi Group Spring Group Hays IT Elan Computing MSB Computing Modis International Select Appointments Harvey Nash Group Best International 260 251 240 200 183 137 123 109 96 227 296 256 150 130 178 143 105 90 102 15% -15% -6% 33% 41% -23% -14% 4% 21% -6% TOTAL£1,708m£1,677m2% Source Holway Report 2001

25. Leading Suppliers of Project Services to the UK Market Rank Company 1999 Revenues (£m) IT Consulting Bespoke Dvmt (T&M) Systems Integration FPD IT Training 1IBM600XXXXXX 2PwC Consulting 454XXXXXXX 3EDS435XXXXXXX 4=ICL300XXXXX 4=Andersen Consulting 300XXXX 6Spring280XXXXXX 6Delphi280XXXX 8Syntegra275XXXX 9=CSC232XXXXXXX 9=Cap Gemini 232XXXX Source Holway 2000

26. Leading Suppliers of Applications Software Products and Solutions to the UK Market RankCompany1999 Revenue (£m) ApplicationsSolutions 1Microsoft360XXXX 2SAP140XXXX 3ICL90XX 4Misys79XXXX 5Sema79XX 6Sage75XXXX 7EDS65XX 8Logica59XX 9Oracle45XXXX 10RM Group44XXXXX Source Holway 2000

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

28. Market breakdown by product/ service 2003 35,650 million Source Holway 2000

29. Market breakdown by industry 2000: 21.9bn Source Holway 2001

30. Market breakdown by industry 2004: 32.0bn Source Holway 2001

31. European IT Expenditure in 2000 by Country Total = Euro 398bn Source Holway 2001 16%

32. Europes IT expenditure Euro Billion200020012004AAGR 01/04 Personnel105.5109.3121.73.6% Hardware86.289.097.23.0% Software & Services 162.9182.6260.012.5% Miscellaneous43.044.648.83.1% TOTAL397.5425.6527.77.4% Source Holway 2001

33. 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

34. Gartner Hype Cycle (June 2000) Will reach plateau in Visibility Maturity TechnologyTrigger Peak of InflatedExpectations Trough of Disillusionment Source Gartner Research Note 5 June 2000 3-D Web Micropayments 5 – 10 years DigitalInk SyntheticCharacters AudioMining Over10 years Quantumcomputing WAP/Wireless Web Jini Speech Recognition WebtopsBluetooth Voice Portals Biometrics 2 - 5 years Smart Cards < 2 years ASPs Voice over IP XML Enterprise Portals xDSL/Cable modems modems Java Language Plateau of Productivity Slope of Enlightenment

35. The future Renewed interest in revenues & profits Internet hype will subside European market growth From products to services, transaction- based charging, asps

36. So what?

37. Economic / social impact virtual relationships –increases economic productivity? –creates digital divide? –magnifies trust and ethics problems Information Technology –allows

38. Role of governments Frameworks and rules of the game –nationally –internationally Users and exemplars –e-readiness Goal setters

39. CSSA Manifesto Promote the sector Build trust, reduce access costs & improve understanding of eBusiness Highlight info security Secure good tax and legislative environment Improve commercial sector/govnt relationship Attract more women Improve understanding by educators Keep members up to date

40. Fantastic opportunities for you

41. Case studies A.Public sector project goes wrong B.Large IT services co. loses its way C.Food retailer goes.com D.eStart-up