Scotland’s failure to attract the brightest technology students and its reliance on offshore skills is a “recipe for disaster”, says a leading information technology body.

In a report published tomorrow, ScotlandIS, the trade body for information technology and communications, will say Scotland faces a growing gap in high-level skills compared with other countries.

It also reveals that one out of two information and communications technology (ICT) graduates in Scotland are leaving to go to other industries and the country risks under-performing against its innovative potential because of a lack of relevant skills.It also highlights a misguided perception that Scotland lacks opportunities in IT.

While other sectors of the economy expect to slow, the ICT sector remains optimistic, with 90% of respondents in a survey for ScotlandIS and 9-20 Recruitment this year predicting growth. The problems companies have been experiencing in recruiting qualified staff has led to nearly 50% of technology companies recruiting from overseas in the last 12 months. The report, prepared by the NMP consultancy, documents the link between innovation in IT and a flourishing, productive economy for the first time in Scotland.

Polly Purvis, executive director of ScotlandIS, said: “This report highlights the need for increased investment in expert ICT skills across the Scottish business community, to avoid an increasing gap between Scotland and comparable leading knowledge economies. “We have world class education standards, but as a country Scotland is failing to attract the brightest young stars to study relevant subjects to maximise innovation. This is compounded by the fact that one in two ICT graduates then goes into other industries. Relying on offshore skills for this is a recipe for disaster. The report’s evidence underlines the fact that we cannot rely on offshore ICT skills to drive innovation in Scotland.”

Donald McLaughlin, general manager for Cisco in Scotland, said: ‘‘In the face of a dwindling working population in the longer term, strong innovation is vital in driving Scotland’s economy. I have grave concerns that we are missing out on this key economic driver. Our economy needs a shot in the arm. A stronger focus on technical innovation is the tonic it needs.”

The report calls for long-term government support at the highest level, particularly in policy and investment, a culture of entrepreneurialism and risk-taking and investment in education and skills, especially for science, technology, engineering and maths. Scotland is experiencing a severe drop in applications to ICT-related undergraduate courses, down by 49% between 2001 and 2006. Exam results improve year on year, but this decline in interest in ICT education has led to a lowering of entry qualifications for courses compared with other subjects.

Raymond O’Hare, regional director of Microsoft in Scotland, said: “If we cannot turn the tide back towards technology as an attractive career option, Scotland will have a poorer quality workforce, which ultimately results in a poorer Scotland.”

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