Analysis: IT Strengths and Weaknesses

The United Kingdom has several competitive advantages, with the primary advantage as the language and culture.  Since the “language of the internet” is English, and all residents of the UK speak English, there is an automatic advantage in the fact that there is nothing lost to translation.  Strengths of the UK include governmental policies supporting IT, a strong and sophisticated financial system, one of the most respected educational systems in the world, and world-class R & D parks.

 While the strengths that the UK possesses are substantial, there are some weaknesses as well.  In fact, some of the aspects that give the country a competitive advantage act like a double-edged sword.  Although the British culture is similar in many respects to that of the United States, British conservatism causes many businesses to be much more risk-averse than similar firms in the United States.  Many of these same British firms also take a more conservative financial stance.  The same government whose IT policies are designed to cultivate advances in IT passes restrictive laws such as RIP (Regulation of Investigatory Powers Act).  Certain political groups lobby parliament to restrict immigration of high tech workers.  Finally, although there are wonderful tech centers in the UK, each center tries to do too many different things rather than specialize in various aspects of technology.

 Investments in new IT manufacturing should be avoided in the UK for the simple reason that labor costs are quite high compared to other countries.  The very proximity to Ireland where there is a high quality labor force and cheaper labor acts as a detriment to IT hardware manufacturing.  On the other hand, because of the high quality of IT professionals and a highly educated society, software development is and should be fostered.  The UK is now, and always has been, a European leader in software development.  At the beginning of the internet development, the UK and the US were neck and neck.  The country has now begun to lag somewhat behind probably because the British culture is not as willing to take risks and that of the US.  Nevertheless, the fostering of software development should be encouraged in the UK, not as off shore programming, but as a European hub for high tech business going in and out of Europe.

 When considering if the UK is behind other countries, except for the US, the UK is not behind.  Where the UK does lag behind the US, mostly in internet development, the reasons are because of the British conservatism and because the telecommunications infrastructure are not as developed as it needs to be.  This is probably due to the UK’s emphasis on wireless technology.  Overall, however, the United Kingdom will continue to be a European technology leader.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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