UK IT leads the world: now let's tell them so

IT sector marketing plan to boost investment

Sir Digby Jones: IT is an unsung hero of British excellence

The government’s trade and investment arm, UKTI, wants a national strategy for marketing the IT sector overseas to boost UK firms’ international business and attract inward investment.

The IT industry is already second only to financial services in its contribution to the economy ­- see below. And the marketing strategy launched last week proposes to identify the most important sectors, technologies and overseas markets to build on that success.

Global opportunities are numerous and growing but the government can do little on its own, trade and investment minister Sir Digby Jones told delegates at the launch.

“IT is one of the unsung heroes of British excellence, but its applications are so wide and diverse it tends to get lost in translation,” he said.

“Effective marketing of UK IT will help both sales and inward investment, and the government can provide a framework, build capacity and help with promotion.

“But government does not make money, business does ­ and it is for business to put the ball in the back of the net,” said Jones.

The current proposal is for a board of representatives from industry and government to set priorities and channel funding.

Resources should be directed to those areas where the UK already has a comparative advantage, says the strategy.

The early thinking divides the sector into four: communications, industrial economics, enterprise software and services, and consumer electronics. It also specifies four vertical areas of excellence ­ e-government, financial services, healthcare, and retail and logistics.

Industry-wide consultation until the end of January will help clarify the priorities, within the UK IT industry and in terms of international markets.

It is crucial that the document is the start, not the end, of the process, said Jones.
“Strategy is important, but implementation is twice as important,” he said.

“This is not just an idea the government is pushing, it is good for business, consumers and for the whole of the UK.”

The IT sector is one of five key areas identified by UKTI as particular strengths to be marketed overseas. The other four are financial services, life sciences, the creative industries, and energy technologies.

The UK has significant advantages, said UKTI chief executive Andrew Cahn.

“We have a very strong research and development business, an open economy, and reliable regulatory and political systems,” he said.

The biggest challenge the industry faces is its image, according to John Higgins, director general of IT trade group Intellect.

“The geeky image of technology is still having an impact on the quality and quantity of skills available,” he said.

“There is also a perception problem ­ government IT disaster stories have an impact on the commercial pipeline.”

UK IT: hold on to your hat* The IT sector represents 6.4 per cent of UK gross domestic product, second only to financial services at 7.5 per cent.

* IT contributes £66.5bn to the UK economy every year.

* The industry grew 125 per cent between 1992 and 2004, compared with 90 per cent for all other sectors.

* It employs one million people directly and supports three million.

*The UK receives about a fifth (19 per cent) of world investment in IT.