North's software industry expects big rise in jobs

The number of people working in the software and computer sectors in Northern Ireland is set to increase by 40 per cent over the next two years, a survey has found. The Software Industry Federation predicts that employment in information computer technologies (ICT) will rise to more than 8,000 by 2002, despite a growing skills shortage.

A membership survey carried out by the organisation predicts there will be a 65 per cent rise in technical support staff, a 35 per cent rise in senior development staff and a 25 per cent rise in specialist staff with one to three years experience.

The survey found many businesses in the sector were planning rapid expansion. Annual turnover among Software Industry Federation members is projected to reach £550 million sterling (€861 million) in 2002, up from £220 million in the past year.

Currently, 56 per cent of turnover is made up from business won outside of Northern Ireland. The bulk is with Great Britain which accounts for 32 per cent, while the Republic is the source of only 14 per cent of business. North America accounts for 10 per cent. The survey found skills shortages were having a negative impact on seven out of 10 ICT companies. The problem was most pronounced among specialist ICT businesses.

Some 72 per cent of firms said skills shortages were lowering growth potential and affecting their ability to develop new products. Almost half the companies polled said staff shortages were resulting in failure to meet deadlines and lower productivity.

A comprehensive breakdown of average salary levels in the sector is included in the report:

directors, £50,354;

senior technical managers, £36,147;

project managers, £33,226;

team leaders with five years experience, £27,065;

sales and marketing staff, £35,857;

senior development staff, £24,216;

specialists with one to three years' experience, £19,559;

administration staff, £13,512;

technical support staff, £17,548;

ICT graduates, £15,752;

non-ICT graduates, £13,072;

placement appointments, £8,846.

Profits amongst the companies surveyed averaged 8.3 per cent of turnover in the sector. For indigenous companies this figure was nearly 11 per cent, while for larger externally-owned units this was much lower.

The survey involved 155 members of the Software Industry Federation in Northern Ireland. This included firms with ICT as their main business and other companies with significant ICT departments including banks, manufacturers and public agencies.