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A recent report from Forrester Research states that there has been a significant decline in the number of graduates from IT-related courses across Europe and that this "indicates that Europe faces a serious risk of a shortage of IT skills".Forrester also believes that "companies need to take action now to support long-term IT competency needs and to pay close attention to the implications of renewed competition for the best talents."

Forrester also reports that many organisations particularly in the finance and public sectors are not replacing staff in "routine" positions in development and operations because these jobs will be outsourced. However organisations that do outsource will still need people with high skill levels for the critical challenges such as security, technical architecture, innovative solutions and new technologies.

According to Forrester "These high-level positions require experience and a relevant background." which is a problem because European governments are struggling to meet the bare minimum of IT skills that industry and commerce need due to the fact that fewer young people in higher education are interested in computer science .

This is backed-up by evidence from the recruitment industry with Hays IT stating that there is currently a seller's market in the public sector and in financial services due to compliance and large-scale re-engineering projects and bigger I.T. budgets.

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