Dialogic researched and authored the second influential report into the future of the UK software economy. It builds on its earlier research report, DTF 2006 (Dialogic 2006). The research and report gained significant media coverage including BBC Radio 4 Today Programme, BBC Radio 5 Live, BBC Breakfast News and the Daily Telegraph.

This report and research examines four key themes: Globalisation, Innovation, Education & Skills and Computing Technology Futures.

Research presented in the report shows that investment from the private sector in intangibles in 2004 was approximately £127bn. Comparing the USA with the UK, recent expenditure on intangibles is 11% of UK GDP versus 13% of US GDP.  This contribution is about the same contribution that investment in tangible assets has on GDP.

The importance of this to the IT sector is significant. Of the £127bn, 15% is spent on software, which is approximately £19bn (rounded); 10% on scientific R&D (£12.7bn) and an incredible 20% or £25.4bn on non-scientific R&D.

DTF 2007 also reports that in 2005/6 the proportion of graduates from IT related degrees that chose to enter careers in the IT software professions was only 30% (rounded.) This is set against the UK IT workforce requirement that averages 156,000 – 179,000 per annum that covers both new jobs created from growth and replacement demand.

Put another way 70% of IT graduates chose or find alternative activities or jobs outside of the IT profession in 2005/6, with 10.1% going on to study for higher degrees or other qualifications, 10.3% are unemployed, 4.3% are engaged in other activities and 3.8% are not available for employment, study or training. Of those finding employment 6 months after graduation a proportion may be classified as IT workers within other industry sectors based on the current government careers taxonomy and some may be in interim jobs.

The calls from the software development industry suggest that they require highly skilled workers with a graduate (or postgraduate) level education and transferable knowledge. The number graduating (UK home) was 15930; 6 months after graduation 71.5% or 11390 individuals (rounded) were in employment or employed and studying, but only 42.4% of that number or 4829 individuals were employed and classified as IT/software professionals. 

Whilst the IT sector as a whole also takes new employees from other disciplines it raises a significant question: why do so many computing graduates consider initial destinations outside of the profession?

The report acknowledges that other professions may be IT rich occupations where IT skills obtained in Higher Education are used and the current Government careers taxonomy is in need of re-alignment with modern IT roles and careers. This may be especially true for the new or emerging careers within the creative economy.

DTF 2007 is an action oriented report; based on policy, economic and industry research that brings together thought leadership as the basis for creating a vibrant UK software economy.