Analsysts react to Budget

Following the announcements yesterday by Chancellor of the Exchequer George Osborne in his 2011 Budget speech, here are some reactions from some of CIO UK’s regular commentators.

“The budget does little to ease the general level economic uncertainty, so we can expect the air of caution and prudence to prevail for some time to come in relation to IT budgets. For UK based CIOs working outside of the Oil and Financial Services industries, there is a perhaps a little comfort in the chancellor clarifying the tax position with regard to overseas profits of UK headquartered companies. As there is always a risk that the centre of gravity for IT control will follow group head office, there is less risk CIOs being impacted by relocation and restructuring.” Dale Vile, MD Freeform Dynamics

“The extra focus on apprenticeships in the Budget is welcome news for Britain’s IT industry which will continue to need fresh young talent. At Capgemini we are currently expanding our advanced IT apprenticeship scheme, and the interest among school-leavers is very positive. George Osborne’s 80,000 new work experience placements are also interesting, and I would look to connect them with our existing ‘Work Inspiration’ events that we run jointly with Business in the Community, which aim to give young people a relevant, meaningful and inspiring foretaste of the workplace.” Christine Hodgson, chairman Capgemini UK plc

“From what I can pick up, there was no change in the planned cuts in spending. The big news seems to be a reduction in the growth forecast from 2.1 per cent growth in real GDP in 2011 to 1.7 per cent. So, from an IT industry perspective, no change in the cutbacks in UK government spending on IT that were announced earlier in 2011, and the likelihood of slightly weaker demand for IT goods and services from the private sector because of the lower rate of economic growth.” Andrew Bartels, analyst and tech spending expert at Forrester