TheIT industry in the North of Englandis
growing three times as fast as the industry in London, according to
figures from the Office for National Statistics.
The figures show that the IT industry in the North grew by
64.25% in terms of turnover in five years, while London's growth
lagged behind at 19.55%.
The figures, analysed by IT staffing company ReThink
Recruitment, also show that total turnover in the North has jumped
from £4.7bn to £7.7bn, an increase of almost 65%. In London, total
turnover rose from £11.2bn to £13.4bn, up by 19.5%.
IT growth in the North can be attributed to cost-effectiveness,
with companies finding England's northern region a much cheaper
base. Andy Lord, director of ReThink Recruitment's Manchester
office, said, "It makes sense for everything: premises, car parks,
staff wages and support services."
The lower cost of the North has led to new businesses
establishing their offices in the region, as well as bigger London
businesses establishing branches.
Salaries in the North are being held down by a continued supply
of qualified staff, with demand for skilled staff not yet
outstripping supply.
The region has also undergone a period of general growth in
recent years, with many areas flourishing and plenty of people
moving into the city centres. "This gives business the confidence
that there is an abundance of qualified professionals to choose
from and efficient support services," Lord said.
The figures showed the area with the lowest growth is the East
of England, where the industry has shrunk by 3.2%, despite the
proximity of the research and development conducted at the
University of Cambridge and the constant flow of graduates. "You
would expect that would attract the IT industry to the area," Lord
said.
"However, the prohibitive housing costs in the area could be one
explanation, and despite Cambridge's strength in physical materials
development, it is lacking in creative software industries and
cannot compete with the London internet media scene."