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'tech Firms Are Struggling In London'

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http://www.telegraph.co.uk/technology/news/10400488/Tech-firms-are-struggling-in-London.html

London tech firms are struggling to grow their business due to soaring costs, a struggle to recruit and a property squeeze, according to a survey.

Seventy per cent of 155 tech managers surveyed by YouGov said their London business has faced barriers to growth.

The most commonly cited obstacles that SMEs think are currently holding the City’s tech firms back include the cost of running the business (48 per cent), lack of available, suitably qualified staff (24 per cent) and a squeeze on high quality, affordable office space (25 per cent.)

In the past year, property rents in London’s Shoreditch tech heartland have soared by 46 per cent.

If they didn't want to be "trendy" and have the London address the free market solution is easy - move to somewhere cheaper like Burnley or Hartlepool.

However the free market solution I'm guessing is even more complex as customers wouldn't want to use a firm in Burnley as it's not "trendy" enough.

Still I'm sure the brightest will figure it out.

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http://www.telegraph...-in-London.html

If they didn't want to be "trendy" and have the London address the free market solution is easy - move to somewhere cheaper like Burnley or Hartlepool.

However the free market solution I'm guessing is even more complex as customers wouldn't want to use a firm in Burnley as it's not "trendy" enough.

Still I'm sure the brightest will figure it out.

I believe Sheffield has a budding computer games industry?

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I believe Sheffield has a budding computer games industry?

There seem to be fair number of SME and also larger tech functions doing well around Leeds too

The lower living costs must be a major attraction, and of course in both cases good universities

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The biggest computer game of all - Grand Theft Auto V - took over a billion dollars of sales in 3 days and was programmed almost entirely at Rockstar North in Edinburgh.

The UK has an excellent record of producing games programmers, mainly thanks to the home computing revolution of the 1980s. It may or may not be interesting that most of the big success stories are far away from London.

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For many IT firms - access to customers.

Most customers have their head offices in London.

Trouble is, your employees can't move to London due to the housing costs.

Also your employees choose not to commute EVERY day - time / hassle / cost unless expensed.

If the travel costs are expensed then it's another employment cost, but much cheaper than London rents and rates.

London as a WORKING place is getting worse.

Playground of the rich with people on benefits hanging on. Less and less in the middle.

That's not healthy. Crime will soar.

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The 'tech city' thing is positioned rather stupidly. Some big names have moved in but that was never the idea... tech startup founders will be living on pot noodles for months, living in london is just not an option. Not surprising the big names can't recruit either. Rents are too high, it is a stupid location.

They could have regenerated another part of the country instead of trying to cram it into london. Stupid.

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The Government for London (they're lucky because they have two governments constantly outbidding each other) decided to fund 'tech' as they worried about financial services employment in the wake of Financial Crisis.

If there is something that government should be funding in a few regional cities of the UK, it is 'tech'.

EDIT: If it is 'access to customers', why do we import stuff from China, why does Silicon Valley even exist?

Precisely, London has enough jobs and industry as it is. Politicians are constantly going on about the tech hub which is supposed to spring up in East London, making that area our silicon valley. I dont know why they dont realise that they are supposed to represent constituencies all over the UK, and not just London. A few years ago, I remember Microsoft invested in cambridge, which would have been a great place to have a tech industry, but that all now seems forgotten in favour of the capital.

Edited by blackgoose

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The 'tech city' thing is positioned rather stupidly. Some big names have moved in but that was never the idea... tech startup founders will be living on pot noodles for months, living in london is just not an option. Not surprising the big names can't recruit either. Rents are too high, it is a stupid location.

They could have regenerated another part of the country instead of trying to cram it into london. Stupid.

Indeed

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For many IT firms - access to customers.

Most customers have their head offices in London.

Trouble is, your employees can't move to London due to the housing costs.

Also your employees choose not to commute EVERY day - time / hassle / cost unless expensed.

If the travel costs are expensed then it's another employment cost, but much cheaper than London rents and rates.

London as a WORKING place is getting worse.

Playground of the rich with people on benefits hanging on. Less and less in the middle.

That's not healthy. Crime will soar.

Yes, the interpretation of "tech" think companies that are feeding off or reliant on the same bubble companies that are centred around London, so closeness to customer base (and government contracts in some areas). not a true tech sector at all, just a spliter tech sector on the back end of what business there still is in the UK with wads to offload (largely thanks to them being desperate themselves to shed staff thanks to the bubble!!!!!).

In servies IT the staff involved more often now are the top level few and management/contract handlers, sending the work abroad for the same cost reasons.

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The 'tech city' thing is positioned rather stupidly. Some big names have moved in but that was never the idea... tech startup founders will be living on pot noodles for months, living in london is just not an option. Not surprising the big names can't recruit either. Rents are too high, it is a stupid location.

They could have regenerated another part of the country instead of trying to cram it into london. Stupid.

Didn't you see Britain from the Air (BBC4 available on iplayer) East Anglia is expected to have a million people move in over next decade or so (to places like Cambourne) most will probbaly be London Commuters (M11)

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Yes, the interpretation of "tech" think companies that are feeding off or reliant on the same bubble companies that are centred around London, so closeness to customer base (and government contracts in some areas). not a true tech sector at all, just a spliter tech sector on the back end of what business there still is in the UK with wads to offload (largely thanks to them being desperate themselves to shed staff thanks to the bubble!!!!!).

In servies IT the staff involved more often now are the top level few and management/contract handlers, sending the work abroad for the same cost reasons.

I can't remember the 'law' - but seem to remember that the more corrupt a country is - the bigger the ratio between the largest city and the next and similar for next tier etc.

London is in many ways a good place for business, but more and more it is about bubble companies relying on money from the state.

The parasites have captured the host and ensured that the host is only helping those parasites.

The problem is accelerating.

Bankers need to be kept out of politics, policy and government handouts.

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I can't remember the 'law' - but seem to remember that the more corrupt a country is - the bigger the ratio between the largest city and the next and similar for next tier etc.

London is in many ways a good place for business, but more and more it is about bubble companies relying on money from the state.

The parasites have captured the host and ensured that the host is only helping those parasites.

The problem is accelerating.

Bankers need to be kept out of politics, policy and government handouts.

Unfortunatly, failed politicians, will end up in banks, with their hands in the till! :blink:

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Most people have a computer connected to the internet and a phone at home. Weirdly it still seems a popular fad to take daily long journeys to use the same equipment located somewhere else.

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Most people have a computer connected to the internet and a phone at home. Weirdly it still seems a popular fad to take daily long journeys to use the same equipment located somewhere else.

Or to lug all your equipment somewhere else with a worse internet and phone connection.

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Most people have a computer connected to the internet and a phone at home. Weirdly it still seems a popular fad to take daily long journeys to use the same equipment located somewhere else.

It does! With a crap speed connection too! :blink:

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It does! With a crap speed connection too! :blink:

Worse, in a recent job I was dragging my laptop in as well! And there was noone else in the office. Crazy.

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Worse, in a recent job I was dragging my laptop in as well! And there was noone else in the office. Crazy.

It's the great corporate plan, and I work for one of the big ones! They actually hire in contractors to do work I could do easily, when I just get to surf the Internet all day, albeit slowly! :blink:

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I have often thought, as I pass some dingy basement office with rows of people sitting at computer screens, one day this'll be as anachronistic as seeing a group of men wearing flat caps emerging from a mine.

I am one of those who managed to persuade my boss, and the team I manage, that it could all work perfectly well from home. I've been based out of the London HQ for more than five years, and working from home for one year.

That said, I still regularly pop into London to make sure they remember I'm still alive. I just spent a couple of days in London for work - and for all of the investment, it's still a chronically unlovely, dirty, noisy place.

Edited by StainlessSteelCat

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I have often thought, as I pass some dingy basement office with rows of people sitting at computer screens, one day this'll be as anachronistic as seeing a group of men wearing flat caps emerging from a mine.

I am one of those who managed to persuade my boss, and the team I manage, that it could all work perfectly well from home. I've been based out of the London HQ for more than five years, and working from home for one year.

That said, I still regularly pop into London to make sure they remember I'm still alive. I just spent a couple of days in London for work - and for all of the investment, it's still a chronically unlovely, dirty, noisy place.

Not paved with gold then, that us worzels are led to believe?

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Dont take this the wrong way folks, but everybody talks up working from home (and I work from home one day a week) like its the solution to all our problems. I'd be interested to find out the proportion of jobs/people in the UK that simply cannot be done at home, you know like firemen, doctors, teachers, manufacturers, shop assistants etc.

I estimate I could do 3/5 of my job at home but that doesn't mean I'd want to. I wanna get out, meet people and then come home to relax and least of all blur the lines between home space and work space. I already find it difficult to 'switch off' the one day I do work from home.

Are we really the top notch knowledge industry/work force that just needs to sit in front of a PC 5 days a week?

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I must point out, I do work in London and only have a 30 minute commute to work. If this was two hours commute each way, I might feel differently, but there again, I probably wouldn't take a job that far away.

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