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The growth of IT SMEs

by Rupert Hodgson,

The growth of IT SMEs

Small and medium sized businesses within the software and technology industry are growing in London as the government begins a campaign of measures designed to open up department contracts. At the same time the growth of Silicon Roundabout reflects the economic potential of SMEs and their contribution to the GDP.

In the past weeks Whitehall has focused on SMEs as an area ripe for expansion. A range of measures have been introduced including advice to government departments designed to provide SMEs with an increased chance of winning government contacts.

The IT industries including SMEs are set to benefit from the redevelopment of the IT GCSE, replacing an outdated model which had contributed to the UK IT skills gap and shortages of software developers. Tech City software developers have also been supported by tax breaks and low-interest loans from the National Loan Guarantee Scheme to promote growth.

SMEs account for 60% of new job creation in the UK and the new guidelines for government departments reflect the importance placed on SMEs in the current economic climate. This week Silicon Roundabout announced that 800 IT positions will be on offer in the coming months. The Roundabout has been a success story for the IT industry and the UK economy as a growing collection of new and innovative companies situated around Shoreditch and Old Street.

The success of SMEs within the IT sector has seen the introduction of government initiatives seeking to ride on industry growth. Public sector guidance has been used promote SME IT companies for medium seized contracts capped at £100 million. The uses of IT SMEs are promoted to increase efficiency and reduce risks of project failure.

The growth of Silicon Roundabout developers has prompted Canary Wharf to move in order to attract up and coming IT companies as they aim to emulate Shoreditch’s based Silicon Roundabout success.
George Osbourne, said in regard to IT SMEs during the release of 2012’s budget: “We shouldn’t be shy about identifying our successful industries and reinforcing them”. This certainly seems a sentiment which will continue in the upcoming months.

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