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The Itch: June; Digital dithering amid IT jobs meltdown


The biggest technology news this month is undoubtedly the manifesto for all things electronic, Digital Britain.

A bit like a report entitled, "Britain under the sun" might deal with windows, lighting, torches, solar panels etc, Digital Britain brings together broadband, FM radio, mobile phones, internet piracy, the BBC licence fee and other tenuously-connected stuff in one great document.

As the Register said this month, its value is defined by its publisher, "a Government that knows it's out on its ear in less than a year - and a minister who'll be in a happier and more lucrative new job within weeks."

The Digital Britain report is therefore a damp flannel in the face of the wet sponge of further job cuts and rate slashes.

Lloyds announced a cut to IT contractor pay rates telling them to work for up to 15 per cent less or face termination.

And agents are reporting that employers are changing their minds at the last-minute and deciding not to recruit; even after candidates have endured multiple interviews.

Overall, the recession will remove 38,000 IT jobs from the economy by 2010 said the Centre for Economics and Business Research (CEBR).

Adding sauce to its gloomy news-bites, CEBR said the contraction in the IT market would fuel total job losses for business services of 334,000 from 2008 to 2013. IT will shrink by 6%, and not recover to 2008 job levels for three years.

Yet if you thought it was bad here, in the US, 34,000 IT jobs were lost in May alone, according to TechServe Alliance.

Yet again the economy is showing that contractors in the IT sector are taking risks and are in business on their own account. Even after years in the same contract, you are in a weak position if the chips are down.

This fact is still not getting the attention it deserves. You might expect that with the new government next year, the yoke of IR35 will be loosened. But Conservative party plans are not clear, as CUK found out this month.

Letters to contractors stated, "Conservatives are concerned about the intentions behind IR35, but we must think carefully about how to resolve this complicated issue. It is not as simple as just abolishing the provisions altogether."

Really? What would you rather do? Spend years fiddling round the edges and then repeal it? It seems the wheel will turn, but remain forever still.

But at least there is some glimmer of light for Plan Bs this month.

A dwindling supply of homes for sale is giving buy-to-let investors fresh cause to add to their portfolios, as both prices and rents avoided slipping for the first time in months.

Hometrack, the property analyst, said void periods, which can be particularly costly for new investors, appear less likely in some areas, partly as the supply of private rented accommodation has started to slow. House prices had, at least for now, halted their 20 month decline.

This is excellent news for contractors with buy-to-let portfolios instead of traditional pensions, since many are suspicious of plans and schemes offered by dark-suited insurers.

As contractor Eliquant writes on the CUK bulletin boards, "Don't put any [money] into a pension scheme, they are dangerous traps where people play with your money like a game of Monopoly, which you have no control over, and if the scheme collapses or you need that pension money now, the answer is usually 'tough luck buddy'".

Of course, contractors on the bench have smaller pleasures to be concerned with. They can now, for example, move their desktop monitors from the lounge to the bedroom – for those days when getting out of bed is too much trouble -- with less fear of injury.

Researchers in Ohio studied 78,000 people and discovered the inspirational insight that, for being smaller and lighter than ancient bulky CRT monitors, LCD monitors have reduced the number of physical injuries caused from a record high in 2003.

So it might not kill you, but will it entertain you? After spending hundreds of pounds on fabulous high-definition equipment (while you were still working) you should, surely, be able to watch some astounding footage.

Not so. The head of BBC HD, Danielle Nagler, has suggested this month that people aren't looking for nature shows and sport in High Definition, but actually want family entertainment and comedies.

During your internment therefore, you can look forward to the stunning realism of Cash in the Attic. One CUK bulletin boarder even suggests, "HD is not technically worth having - but if you want to spend lots of money and be able to brag about how big it is, it's the way to go."

"It's that digital mediocrity again," says boarder Expat. HD TVs have motion blur and digital artefacts, he adds. "You get used to it, like you get used to MP3s lack of fidelity, and digital photography pixilation."

Perhaps Lord Carter – the author of Digital Britain -- should have browsed the CUK bulletin boards before he produced his report. He might have learnt something, and the report could have then been two sides of A4 that actually said something useful.


William Knight


Jun 26, 2009

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