Columnist

Why the future of digital skills stretches beyond Silicon Roundabout

While many industries struggled through the recent economic downturn, some managed to use 21st century trends to their advantage in a time of uncertainty. With a digital sector that is providing huge growth in UK businesses and employment, the technology industry is flourishing.

London has been the centre of the technological revolution with the so-called Silicon Roundabout the pulsating heart at its core. The East London tech-city area stretches from Old Street Roundabout to the Queen Elizabeth Olympic Park in Stratford and is the third-largest technology startup cluster in the world behind San Francisco and New York City.

There are an estimated 40,000 digital technology businesses in London, up by more than 12,000 since 2010. That figure could surpass 50,000 within a decade. However, many other cities across the country have emerging enterprises of their own and are challenging London to become the hub of UK digital industry.

The digital industry is expanding beyond London

74% of UK digital companies are now based outside of the capital. Bristol, Manchester and Cambridge are already widely recognised as significant tech clusters while the Humber region boasts the UK’s fastest growing digital sector.

A rise in the number of technology-based roles outside of London is an inevitable outcome of the way technology has become integrated in everyday life. More and more companies are integrating new innovations such as cloud technology into their work in order to keep up with their competitors.

Another factor increasing digital jobs across the nation’s new tech cities is the relative cost of living. It has become easier for companies to operate out of more remote locations as the tech infrastructure of the UK has improved. Businesses are taking advantage of the benefits of moving away from London where they can operate more affordably. This is also appealing to digital professionals who can have a cheaper cost of living out of the capital.

Demand for digital skills outside of the capital has increased

Demand for digital skills has skyrocketed across the world, let alone the UK. Firms are increasingly seeking skills in Big Data, cloud development and SAP.

In their latest quarterly report on recruitment activity, Hays say they have witnessed a particular need for candidates with SAP, which is increasing in popularity, especially in the big growth area of consumer goods. Eursap, the London-based suppliers of SAP talent across Europe, have specifically highlighted SAP configuration and implementation methodology as two of the most sought-after skills.

As more businesses across the UK battle to attract and retain such digital professionals, average salaries in the industry are increasing. London’s average advertised salary for permanent roles has remained the highest in the UK having risen 3% in 2015 to £53,107.

However, average salaries in cities outside of the capital have also risen. This, combined with the lower cost of living, is enticing professionals away from the Silicon Roundabout where the cost of living is at an all-time high.

Digital skills are being implemented into education to help solve digital skills gap

More than 12 million people and a million small businesses do not have the necessary skills to prosper in the digital era. This has led to increased pressure from charities such as Go ON UK on the government to implement digital skills training into the national curriculum.

A 2015 European Schoolnet report pointed out that 16 EU member states including the UK teach coding in schools at some level. However, the House of Lords digital skills committee has called for aradical rethink of the curriculum after claiming that digital literacy should be treated as a third core subject alongside numeracy and literacy.

Organisations such as Coder Dojo are already encouraging children between the ages of 7 and 17 to learn digital skills such as coding. With the continued innovation in technology, the importance of having digital skills will only further increase.

This was posted in Bdaily's Members' News section by Steven Jacobs .