Government might become less reliant on IT oligopoly but more reliant on suppliers in long run

The government is determined to reduce its reliance on IT suppliers. It doesn’t feel it has been getting a good deal from the oligopoly of major suppliers.

But at the same time the government is not hiring IT professionals. This could be a worrying trend.

While Frances Maude and his cronies have undoubtedly got the knives out for the big suppliers, and not without good reason, the government might soon be even more dependent on a larger set of suppliers. It will probably get good prices but there could be trouble in store a little down the road.

I am writing this following some articles I wrote about the findings of the latest research from Salary Services Limited (SSL) about the UK IT jobs market. One of the interesting findings was the huge drop in IT recruitment in the public sector. Obviously the fall in IT recruitment in the public sector is not a surprise, but the sheer scale of the drop is.

The research shows that while public sector IT vacancies collapsed to only 605 in the third quarter of 2011, some 40.6% less than the third quarter of last year, the number of jobs advertised by software houses and consultancies in the same quarter was 44,112, 18.8% higher than last year.

And things look set to get worse in the public sector. The National Audit Office (NAO) recently said it is likely government IT will continue to be subject to heavy spending cuts which will inevitably include job losses.

Perhaps it is irrelevant at the moment because nothing seems to be being done in government IT at present. Well that’s according to a consultant contact of mine who works in the government sector.

The SSL research also revealed that if you want a job in IT you have to move to the South East, This is because the software houses/consultancies are based in the SE and so art the banks, which are the next boggest recuiter.

The survey also revealed the software skills that are in most demand across all sectors.

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