Two thirds of North West tech businesses report skills shortage

“It is particularly worrying that Northern tech hubs like Manchester and Leeds have experienced greater rises in skills shortages than London, as these cities are often competing for talent that’s lured to the capital.

“Across the UK, the sector struggling most is transport/logistics where 76% of tech leaders said they are facing a critical skills shortage that is preventing their organisation from keeping up with the pace of change. The top band of companies, those with IT budgets of more than $250m, are also badly hit, with 74% reporting a critical shortage.

“On a positive front, it is encouraging to see how the digital economy is developing outside London. But at the same time factors that we may have thought unique to London – overheating skills shortages – are also spreading.

“At some point all of the UK economy will be a digital economy and the government will need to find ways of spreading the value generated evenly. Across the UK, businesses face a challenge in turning these tech skills shortages around.

“Large corporates in particular need to find solutions fast. We are seeing quite a profound generational shift in which Millennials are most interested in innovative projects and learning new skills, more so than in salary and job security.

“They are looking to work for enterprises that have a clear purpose, and many of them also care deeply about working for a business with strong ethical, environmental and sustainability credentials. As a result, smaller, younger companies are frequently a more attractive proposition to today’s wave of IT talent.”