Digital natives are changing business IT

companies are still assessing the benefits of consumer-led IT

The IT sector is looking healthy, but business needs to adapt to the rise of the tech-savvy “digital native”, according to the latest industry analysis seen exclusively by Computing.

Technology professionals are better qualified than the overall population, says the e-Skills UK IT and Telecoms Insights 2008 report, to be published this week in association with Gartner.

Some 55 per cent hold undergraduate-level qualifications or higher, compared with 32 per cent for the general workforce, says the report.

IT staff also command higher salaries. The typical weekly wage of £690 is some 61 per cent more than the UK average of £420.

And technology sector recruitment in the coming decade is predicted to expand at 2.5 per cent, five times the 0.5 per cent rate predicted for the overall economy.

But despite the positive outlook, businesses face considerable IT staffing challenges.

“Digital natives ­ those born after 1985 who have grown up in an IT-intensive environment ­ are not only customers, but also the source of the next-generation workforce,” according to the e-Skills report.

“The expectations of digital natives are very different from past generations, and companies will need to work out how to adapt to meet their needs.

“The rise of social computing and increased power to the consumer to determine content and services are shaping the development of IT, the nature of business, the wider economy and the ways society interacts,” it says.

Using technology to reach new markets and drive performance is a pre-requisite for survival. And this can include consumer technologies such as social networking, according to Karen Price, chief executive of sector skills council e-Skills UK.

“Tools such as collaborative working present a great opportunity to bring together geographically-dispersed teams as well as encouraging productivity and creativity in the workplace,” she said.

Provided guidelines are set out by companies from the start, web sites such as Facebook can be used in a profitable and efficient way, said Price.

“Control over reputational risk is very hard to manage, but with clear parameters of use, companies should offer an efficient, enabling environment and learn a lot from the use of these tools,” she said.

But not all businesses are convinced, according to David Roberts, chief executive of user group The Corporate IT Forum.

“Employers are questioning the benefits and risks that so-called ‘digital natives’ can bring and whether their demands represent a positive impact to the business,” said Roberts.

“Social networking changes individuals’ focus from working to playing, and it is hard to manage the two in a productive work environment.”

The other major factor highlighted by e-Skills UK is the impact of globalisation on the UK IT workforce and the need for increasingly complex skills across the industry.

Some 65 per cent of IT recruitment demand until 2012 is expected to originate from managerial and senior levels, says the study.

But as demand for specialists increases, IT managers also need to be realistic about the experience available in the market, said Del Monte IT manager Mike Proudlock.

“If you can’t get the five per cent of high flyers, you have to be prepared to invest in your own workforce,” he said.

“By training staff that already have some experience, we both make them more attractive to the market, and at the same time make employees feel they are being invested in.

“Retention rates are higher as a consequence.”

Annual demand for new entrants into the industry is running at 141,300. Of that number, some 70,900 are expected to come from other occupations and be retrained.

The financial services industry is still a major growth area, said Carrie Hartnell, programme manager of supplier trade body Intellect.

But a growing assumption that IT jobs are moving offshore is creating a perception that technology is not an attractive career, she said.

“More efficient awareness and re-skilling need to be done,” said Hartnell.

“But isolated work by small groups will not change the situation ­ the industry needs to act collectively.”