The UK economy is in a strange place. Employment figures are at a record high, but overall growth remains sluggish. Rosier figures for the long-term health of the economy come along, then they’re downgraded. Small businesses are flourishing, but major high street retailers are going out of business on a weekly basis.

One clear and strong success story, however, is the UK tech industry. Showing amazing growth and proving attractive to investors, there seems to be no slowing the sector.

The Facts

Fresh figures from Tech Nation have echoed other sources in showing the tech industry is growing 2.6 times faster than the rest of the UK economy. In 2016, it was worth £170 billion, in 2018 this figure has grown to £184 billion. The report also showed that, outside of London, there are 16 ‘silicon suburb’ towns across the UK with a much higher than average tech employment rate, with towns like Bristol leading the way.

The report also underlined how fast tech firms in the UK are growing. UK GDP grew by 1.7 percent in 2016-17, but over the same period the tech sector grew by 4.5 percent. Alongside this was a five-times rise in the number of jobs in the tech industry, making it one of the healthiest and fastest growing employment sectors.

The Investment

All of this growth inspires, and in turn is fuelled by, a great deal of investment. International investors were particularly enthused by the UK tech industry, pouring money into firms in the hopes of finding the next Deliveroo or Zoopla. In 2016-17, British tech companies raised a total of £4.5 billion from venture capital sources, a doubling of the previous years total.

This could be, in no small part, due to the fact that many of the UK’s tech firms have an international reach and investors see great technology with an in-built global reach. A full third of London tech businesses, for example, have foreign clients, which outstrips the reach of California’s Silicon Valley. Domestic and foreign investors are seeing companies that have a bright future, very healthy growth and international reach. So, it should come as no surprise UK tech companies represent an attractive investment.

This has been shown in a number of high profile exits. Machesterfashion.com was sold for £750 million to a private equity investor and Leeds firm CallCredit was purchased for £1 billion. The incredible growth and underlying base for UK tech firms is providing fertile ground for firms with good ideas and the drive to succeed, with buyers and investors on hand to capitalise.

If you’re an ambitious tech firm, take a look at our business finance and capital investment options, we can help you get your hands on the money you need to move forwards in one of the most vibrant, successful sectors in the world. 

We’ve all heard of the skills gap, a problem that has been getting progressively worse in the UK over the past few years. Companies have positions to fill, they are seeking out new candidates, but they simply can’t seem to find individuals with the appropriate or relevant skills.

This problem is worsening within the tech industry and it’s not just businesses that are predominantly focused on tech that are feeling the pinch. Businesses working across a plethora of sectors need to create a workforce with significant tech skills thanks to the ways in which industries are changing.

As processes become automated and more and more businesses move onto the cloud, having professionals with tech skills that can easily adapt to these new ways of working is more crucial than ever.

So, what steps can businesses take if they want to bridge the tech skills gap?

Invest time in your team’s professional development

It’s no good just recruiting candidates and expecting your tech talent shortage to magically disappear. You need to invest the time and relevant resources to train employees. Digital transformation means that the skillset needed by professionals is changing if they are to manage applications in the cloud effectively.

You need to ensure that you are doing more than just making training available. Instead, treat the development of skills in the same way that you would any other business challenge. This will mean that assessment, management and measurement are all crucial.

Consider adding these steps to your cloud training program

•  Add training goals to each of your team member’s monthly or quarterly goals. Ensure that these are measurable and that your workforce knows what they are working towards. When goals are reached or surpassed, reward your team accordingly.
• Tech is constantly adapting and changing and because of that, you need to instill a culture of continuous improvement in your company and ensure that there are transparent metrics around effort and end results.
• Ensure that your training plans aren’t static – they will need to evolve as quickly as the industry does, which is fairly rapid. 

Try nontraditional resourcing methods

When you’re looking for new talent, consider expanding your search, as doing so could help you attract candidates from relating industries including hard sciences, research, and applied maths.