Technology barometer: Glimmers of optimism brighten job prospects

Green IT appears to be slipping down the corporate agenda, while dissatisfaction with the coalition’s technology strategy is palpable across both the user and vendor communities. These are among the more notable findings of this, the seventh quarterly Computing/Cobolt Technology Barometer survey of technology suppliers and buyers, which also suggests that after a period of retrenchment, spending on key technologies has either stabilised or increased.

Following months of instability and low spending in the wake of the banking crisis and recession, both suppliers and buyers report that the market has stabilised and that spending has remained flat quarter on quarter. However, the number of IT suppliers reporting green IT as a driver continues to fall, with more than 50 per cent now saying they have kicked all green IT considerations into the long grass.

Spending on virtualisation, often seen as the precursor to cloud migration, remains strong, with 50 per cent of vendors and buyers now using or evaluating the technology. A further 30 per cent plan to adopt it in the next year, while a surprising 20 per cent remain unconvinced of the benefits.

Adoption of cloud computing  is surprisingly high, with more than 50 per cent of vendors saying they already use the technology. The traditional time lag between vendors and buyers with regards to uptake of new technology is evident here, with only 20 per cent of users reporting use of the cloud, up from 10 per cent a year ago.

Smartphones
The issue of increased corporate uptake of smartphones elicited some surprising divergence in views between IT vendors and buyers. Some 50 per cent of vendors say they believe Apple is winning out over other platforms, compared with only 29 per cent of IT buyers. This perhaps reflects the fact that suppliers are more likely to be early adopters of technology, and it could be the result of the unexpectedly high uptake of the iPad. However, there remains time for others platforms to seize the advantage, with 20 per cent of buyers and 39 per cent of vendors tipping RIM and others to do just that.

With regards to mobile software platforms, both groups name Android as the favourite although vendors appear more certain, with 50 per cent supporting that view compared with 30 per cent of buyers.

Employment and salaries
Some 60 per cent of vendors say they expect to increase staffing levels this year, compared with 26 per cent of buyers. This disparity may be the result of IT leaders buying technology with a view to increasing efficiency and, perhaps, reducing headcount.

And this trend is also evident in salary levels, with IT buyers again seeming more reluctant to spend on staff, with more than 70 per cent saying they expect no change in salary levels, while vendors again seem more willing to invest in staff, with more than 40 per cent saying that they expect salaries to increase.

As regards government policy, there appears to be widespread dissatisfaction across both groups, with 75 per cent of all respondents saying the coalition needs to do more to support start-ups, entrepreneurs, growing businesses and investment in the sector.

The Chinese are coming
Finally, both groups cite China as a rapidly rising player in the sector, with a third of all respondents seeing increased action in the region.

Activity is particularly strong with regards to investment, with more than 45 per cent of buyers and 37 per cent of vendors expecting to see an increase in direct investment by China in the UK in the next year. A surprising 67 per cent of both groups expect Chinese companies to acquire firms in the UK. If this proves to be the case, it will mark a seismic shift in the relationship between businesses in both countries.

The survey was conducted in co-operation with Cobalt Corporate Finance. Colbalt questioned 80 of its IT supplier customers, while 200 of Computing’s research panel of IT decision-makers responded.