smallbusiness.co.uk: Helping your business think big

The government procurement process should favour small businesses and move away from a large, multi-year system to make it simpler for smaller firms.

A report from Intellect and the British Computer Society advised the system for applying for public-sector contracts should be simplified to make it easier for small companies to apply.

The study, which made predictions on the future of the software industry, claims smaller firms will see more competition from European companies in 2009, which could be solved in part by the government.

Gordon Frazer, managing director of Microsoft UK, describes Britain's smaller software firms as 'vital' to the sector as they employ almost a third of the people in the industry and aid innovation.

Help should also been given at student level, to encourage more pupils to learn IT skills and go into the sector, which would aid small firms looking to recruit, the report advises.

Another recent report from the British Computing Society reported last month that around 37,000 women disappeared from the IT industry between 2001 and 2007, creating a skills shortage in the sector.

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