1. 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

2. The Information Technology Telecommunications & Electronics Association Overview of Intellect www.intellectuk.org

3. -The Background to Intellect -Who Benefits from Membership -Intellect Influence & Representation -Campaigns -Knowledge & Advice -Networking Opportunities -Business Support Services -Marketing & Promotion Services -Summary

4. 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

5. 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

6. 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

7. 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.

8. Campaign priorities -Broadband Services -Digital TV -Manufacturing -WEEE -R&D Tax Credit

9. Other major issues -Corporate Social Responsibility -Digital Rights Management -OFCOM -Spectrum Broadband -Innovation

10. We provide market and sector knowledge & advice through: -Email bulletins -Market intelligence reports -Benchmarking surveys -Business guidance publications -Business briefings

11. 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

12. 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

13. 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

14. In Summary Intellect Provides: - Effective Representation - Networking Opportunities - Business Support Services - Marketing & Promotion Services - Industry Information & Advice

16. Questions?

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 & Services21.923.832.010.4% Miscellaneous4.74.95.33.0% TOTAL54.758.171.67.2% Source Holway 2001

19. UK IT and electronics facts Source:ONST/O £bn GVA % Emps 000 Trend Components6.3.2544- Computing/office15.8.2756- Telecom/broadcast15.0.5168- Defence, auto, ind6.2.3273+ Audio-visual4.8.1233- Software & IT servs40.62.85573- Telecom servs41.42.15238+ Totals1306.481085-

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

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

23. Source Holway 2001

24. 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

25. 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

26. 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

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

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

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

30. 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

31. Demand for E-business and ICT skills in Western Europe by category in 2000 2000 2003

32. Demand for E-business and ICT skills in Western Europe by category in 2000 2000 2003

33. Demand for ICT skills by country in 2000 % breakdown

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

35. Europes IT expenditure Euro Billion200020012004AAGR 01/04 Personnel105.5109.3121.73.6% Hardware86.289.097.23.0% Software & Services162.9182.6260.012.5% Miscellaneous43.044.648.83.1% TOTAL397.5425.6527.77.4% Source Holway 2001

36. 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

37. 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

38. 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

39. So what?

40. 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,

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

42. Still excellent opportunities for you

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