Foreword

Stephen Kelly, Chair, Tech Nation

There’s no doubt that 2020 has been a turbulent year. But amongst all the disruption and uncertainty that we, and companies alike, have faced, I for one couldn’t be prouder to see UK tech remaining a global talent magnet, open for business, and attracting investment from all over the world. In short, UK tech is resilient.

This must not obscure the fact that there will be plenty of rebuilding that will need to take place, for economies, as well as societies around the world. But Building Back Better starts with having access to world-class talent. 

As the race for global tech talent heats up, many countries have been making their pitch to attract the best and brightest to grow their tech industries and create jobs. The Global Talent Visa, for which Tech Nation is the official endorsing body for the Digital Technology route, was the first visa route of its kind, when its predecessor the Tier 1 Exceptional Talent visa was created in 2014. The Global Talent Visa enables tech talent to work in the UK’s digital technology sector. Over the last two years, the visa has received over 1,975 applications, and endorsed over 920 visas from over 90 countries worldwide. 

The UK has long been a country shaped by people from all parts of the world. An historic trading nation, the country’s industrial and cultural DNA has been built on the basis of openness to people from all backgrounds - truly a multicultural melting pot. This is what gives the UK strength in 2020, in the face of challenges, we pull together the vast range of expertise, of work experience, and national heritage to forge a path for the future.

The Tech Nation Visa signals that the UK is open to world class exceptional talent and is one of the best places for people to fulfil their tech ambitions. Demand for the route has continued to rise, with growth of 45% and 48% in the past two consecutive years. 

In 2020, 52% of those endorsed for the Tech Nation Global Talent Visa are employees at some of the UK's leading tech firms, while 28% of those endorsed are tech founders, creating wealth and jobs in the UK’s fast growing tech sector. The visa has enabled 421 founders to set up business in the UK in 2020, up from 400 in 2019. 

The Tech Nation Visa Report sheds light on changes in the international talent landscape, a growing interest in the UK’s Global Talent Visa and an update on stats for the Global Talent Visa. All of which confirms the vital role the visa plays in the UK, and the success with which we have been able to welcome world leading talent to this country over recent years.

A word from Kingsley Napley

This report is a well-deserved celebration of a UK immigration success story. The Global Talent visa is unique in offering applicants the flexibility to contribute to the UK digital technology sector in a myriad of ways, as employees, founders and academics. 

The report confirms what our day to day work has shown, despite the challenges of the pandemic, this is a sector which continues to thrive and where competition for the top international talent remains fierce. The 48% increase in applications over the last year is testament to the enduring global appeal of the UK digital technology sector.

Beyond the data, the case studies reflect the diversity in background, nationality and skills of successful applicants. It is notable that so many of these case studies reflect on the varied, and sometimes challenging, personal experiences the applicants have lived through and which have shaped their careers and decision to make the UK their home. We have no doubt that this diversity of experience is an asset from which the UK can only benefit.

That the voice of alumni is given such a prominent position in the report underscores the considerable added value this network offers to those considering applying to Tech Nation for endorsement. It is something we hear from our clients regularly, access to the alumni network is as valuable as the visa itself. 

Kingsley Napley LLP are proud to partner with Tech Nation on a visa which is helping to shape and support the UK digital technology sector. We advise both businesses looking to scaleup and access top international talent and individuals looking to make the UK their home. The Global Talent visa is attractive to both. In addition to the flexibility it offers and the network it provides, it showcases the UK as a place which recognises, respects and rewards international talent and that profile will only become more important as we come to the end of the transition period and face the new challenges of 2021.

Executive summary

The recipe for scaling success undoubtedly includes investment, robust and experienced leadership, product/ market fit and traction. And companies at the pinnacle of growth use these strengths in varying degrees to achieve success.

But, there is one essential ingredient that no tech scaleup can do without, often in abundance - and that is talent.

The publication of this report falls only two months before the end of the UK's transition period from exiting the European Union. This shift is bound to mean changes for the way in which talent flows into, and out of the UK. This report therefore aims to provide a benchmark to enable change to be measured, a state of the nation assessment of the Global Talent Visa, and the landscape it is contextualised by.

The Global Talent Visa, for which Tech Nation is the Designated Competent Body (DCB) is one of the mechanisms by which the UK is able to stay ahead of global tech competitors. An important component of the migration policy system, the route enables highly skilled tech talent to come and work, or set up a business in the UK without the requirement for sponsorship that other tiers of the policy system demand.

We are privileged to be able to shed light on many of the talented people who have received the Tech Nation Visa over recent years - their stories of migration and growth in the UK are featured throughout the report. The positive contribution that talented tech migrants have made to the UK ecosystem should not be underestimated.

For scaleups, talent will almost certainly continue to be the defining factor for their accelerated growth. We support the idea that the Global Talent Visa, and other migration policy routes, should be seen as an essential part of the jobs and skills landscape in the UK. By highlighting key characteristics of this landscape and developing an understanding of the rapidly changing labour market, we hope to inform and inspire more people to embrace the UK as their tech destination of choice - a Tech Nation that is, more than ever, open for business.

Demand for global tech talent relocating to the UK has rocketed in 2020

• The Global Talent Visa enables tech talent to work in the UK’s digital technology sector. Over the last two years, the visa has received over 1,975 applications, and endorsed over 920 visas from over 50 countries worldwide
• According to internet search data from SEMrush, the volume of users in the UK searching online for terms explicitly related to UK tech visas increased by over 3x from April to September 2020.
• Demand for applications has increased dramatically over the previous two consecutive years since 2018, with 45% and 48% increases respectively, and demand expected to increase from 2021 with the EU coming into the route.

The UK leverages talent from across the world, as well as home grown experts, to enable the continued growth of high priority sectors such as AI

• The talent landscape is not uniform in the UK, and there are huge opportunities for exceptional tech talent across the nation.
• In the UK, employer demand for AI has increased by 111% from 2017 to 2019
  • Northern Ireland and Wales have seen the greatest increases in demand for AI jobs at 418% and 200% respectively over the past three years.
  • Cyber skills are becoming increasingly important within the UK. There is growing employer demand for such skills across the UK, particularly in regions such as Wales and the East and West Midlands, where there has been a huge increase in the demand for Cyber skills, at 351%, 306% and 292%. 
• Talented founders from outside of the UK are setting up pioneering tech companies - 28% of those people endorsed for the Tech Nation Global Talent Visa are a tech founder
• As well as boosting the innovation potential of the UK, global tech talent is helping to fill existing skills gaps in UK tech firms - 52% of those people endorsed for the Tech Nation Global Talent Visa are employees

Having Machine learning and AI, Software development and Research skills are strong predictors of Visa endorsement

• The Top 5 roles or skills groups for endorsement on the Global Talent Visa for applicants are:

• India, US, and Nigeria are the top 3 countries from which exceptional talent has come into the UK through the Tech Nation Global Talent Visa. 
• There have been fewer applicants from China (77), but most of them (86%) have been successfully endorsed.
• There are clear regional differences in skills that emerge through applications.Endorsed applicants from Asia are most likely to work in AI & Machine Learning, whilst most successful applicants from Europe are in Apps & Software Development related fields. 
• Most North American applicants have skills related to Digital Advertising & Marketing, and a significant number have worked in eCommerce & Marketplace firms.

Global demand

Demand for global tech talent relocating to the UK has rocketed in 2020

According to internet search data from SEMrush, the volume of users in the UK searching online for terms explicitly related to UK tech visas increased by over 3x from April to September 2020, from an average of 20 searches per week in April to 70 searches per week in September.

Labour markets around the world have also undergone profound shifts in 2020. This surge in interest to work in the UK’s digital tech sector is reflected globally too, with a 100% increase in users internationally searching for these terms in countries like the US and India. 

Figure 1 Average monthly searches for ‘UK tech visa’ Jan 2018 - Sep 2020

Source: SEMrush, 2020

Analysing global search data for 'UK tech visa' showed that most search traffic came from the UK (where there was an all time peak in June 2019), followed by India.

Figure 2 Average related  searches for ‘UK tech visa’  in the UK September 2020

Source: SEMrush, 2020

Voices of Alumni - Why the UK?

UK labour market

Digital tech saw a 36% increase in vacancies from June to August 2020, second only to healthcare for the number of jobs advertised

The UK labour market has undergone profound shifts over the course of 2020, not least due to the global Covid-19 pandemic. We can not ignore the impact global issues have on society and the economy. Covid-19 has profoundly affect demand for roles across the labour market. We can see that digital tech roles remain in high demand compared to other sectors. During these uncertain times, technology has been an enabler for many companies and communities.

The chart shows the number of advertised roles from January to August 2020. We see from March that the number of roles advertised decreased rapidly across most categories. 

To look at the data to June paints a picture of the ubiquitous decrease in vacancies across the UK labour market. But, when we take a longer term view to August 2020, a new trend of resurgence surfaces.

Digital tech is second in importance in the UK labour market in 2020 only to Healthcare. Digital tech roles have seen a 36% uptick from June to August, unlike many other sectors, like Retail, which have reached a plateau.

In 2019 the role of software developer was one of the top 5 sought after roles across UK cities, amongst key worker roles such as Nurses and Social care workers

This shows the importance technology plays in the UK economy. Digital tech skills and roles are becoming increasingly critical to businesses across UK sectors, as well as multiplying with the growth of the tech sector. This finding was mirrored in application data, assessed in the next chapter, where Software Developer was a commonly cited role when referring to relevant technical experience, and the prospective role of the applicant to be conducted in the UK.

Table 1 Top roles by frequency, advertised in 2019 in the UK

Source: Adzuna, 2019

Within some of clusters such as  London, Glasgow, Edinburgh, Belfast and Cambridge, Software developer was the most advertised role of 2019 out of any role advertised. Unsurprisingly, then, the most advertised digital tech role across the UK cities was a Software Developer.

Employer demand for AI has increased by 111% from 2017 to 2019

AI is increasingly becoming a sought after skill. According to Forbes, this is an area of technology which will govern autonomous vehicles. voice and personalisation. 

Figure 3 Percentage change between 2017 - 2019 for the demand of AI skills across the UK

Source: Tech Nation, Adzuna, 2019

There has not been any evidence of an apparent decrease in the employer demand for AI skills within specific regions of the UK. Overall, there has been an increase in the demand for AI skills over the past 3 years.

As seen in Table 2, below, the areas of the UK which have seen the biggest increases are Northern Ireland and Wales at 418% and 200% respectively.

Table 2 The number of roles requiring AI as a skill within tech roles across the UK from 2017 -2019

Source: Tech Nation, Adzuna, 2019

Cyber skills are becoming increasingly important within the UK

There is growing employer demand for such skills across the UK, particularly in regions such as Wales and East/West Midlands, where there has been a huge increase in the demand for Cyber skills, at 351%, 306% and 292%. 

Figure 4 Percentage change between 2017 - 2019 for the demand of Cyber skills across the UK

Source: Tech Nation, Adzuna, 2019

Data from the ONS  estimates approximately 48% of businesses lack the technical Cyber Security skills, which limits achieving business goals. 68% of businesses have actively tried to hire someone within the last 5 years. More than a third (35%) of these vacancies are hard to fill, indicating unmet demand for roles, and associated skills groups.

Table 3 The number of roles requiring Cyber as a skill within tech roles across the UK from 2017 -2019

Source: Tech Nation, Adzuna, 2019

The East of England and Wales has seen highest employer demand for Fintech skills across the UK.

Figure 5 Percentage change between 2017 - 2019 for the demand of Fintech skills across the UK

Source: Tech Nation, Adzuna, 2019

Although there has been a decrease across some regions within the UK, according to the Business Insider, this may be due to the fact Fintech companies are also expanding their compliance teams, whilst the UK banking industry are leveraging tech skills to ensure they are keeping up with consumer demands. 

Table 4 The number of roles requiring Finance as a skill within tech roles  across the UK from 2017 -2019

Source: Tech Nation, Adzuna, 2019

Global Talent Visa

The Tech Nation Visa, or Global Talent Visa in digital technology, enables the brightest and best tech talent from around the world to come and work in the UK’s digital technology sector, contributing their cutting-edge expertise, creativity and innovation to maintaining the UK’s position at the forefront of the global digital economy. But what are endorsed applicants applying their expertise to, and how does the area of the tech economy that an applicant chooses to work in determine their likelihood of being endorsed? This section gives a run through of the Tech Nation visa itself, using administrative data we have access to through our work endorsing the visa, with the Home Office.

Over 50% of applications to the Visa have been from Asia

However, Asian applicants have a relatively low endorsement rate compared to those from other continents. The number of applications from North America was about a third of that from Asia. However, their applications have been endorsed at a much higher rate (74%) than those from Asia (48%). Applicants from South America, Oceania, and Europe have had about 70% endorsement rate, whereas those from Asia and particularly from Africa (37%) have not been very successful with their applications comparatively.

Figure 6 Total applications and endorsement rate by continent (2020)

Source: Tech Nation, 2020

India, US, and Russia are the top 3 countries from which the exceptional talent has come into the UK with the Tech Nation visa.

It is noteworthy that, although there have been a total of only 77 applicants from China, most of them (86%) have received our endorsement.

Figure 7 Total applications and endorsement rate by country (2020)

Source: Tech Nation, 2020

The most highly valued skills that applicants state they have are Software Engineering and Business Development.

Figure 8 Skills most likely to be associated with the endorsement of an application to the Global Talent Visa

Source: Tech Nation, 2020

Endorsed applicants from Asia have been mostly in AI & Machine Learning, whereas most successful applicants from Europe have been in Apps & Software Development.

The sector distribution of the endorsed applicants from North America and Oceania is rather diverse. That said, it is noteworthy that most North America applicants have been in Digital Advertising & Marketing, whereas a significant number of applicants have worked in eCommerce & Marketplace. Most applicants from Africa have worked in Apps & Software Development, AI & Machine Learning, and Fintech. Most applicants from South America have heavily focused on Apps & Software Development, followed by AI & Machine Learning.

Figure 9 Sector concentration (for endorsed applications) by continent

Source: Tech Nation, 2020

Successful applicants from India have mostly worked in Apps & Software Development, AI & Machine Learning, Enterprise Software & Cloud Computing, and Fintech.

Most successful applicants from the United States have worked in Apps & Software Development, Enterprise Software & Cloud Computing, and Digital Advertising & Marketing. Russia applicants have heavily focused on Fintech, whereas most Nigeria applicants have worked on Apps & Software Development. Interestingly, there have been very few Canadian applicants in AI & Machine Learning.

Figure 10 Sector concentration (for endorsed applications) by country

Source: Tech Nation, 2020

Most applicants to the Global Talent Visa, 52%, come to the UK as an employee in a UK tech firm

These employees are mostly in Apps & Software Development and AI & Machine Learning. The second largest group of exceptional talents with our visa endorsement is the founders, mostly working in the sectors of Apps & Software Development, AI & Machine Learning, and Fintech. There are also 127 executives working in eCommerce & Marketplace, Fintech, and AI & Machine Learning, and a significant proportion of Academic or Researcher applicants are in AI & Machine Learning. Most consultants have come into the sector of Digital Advertising & Marketing.

Figure 11 Endorsed applicant employment type by sector

Source: Tech Nation, 2020

28% of people endorsed for the Tech Nation Visa are founders, establishing and headquartering businesses in the UK

Figure 12 Endorsements by prospective position of visa holder

Source: Tech Nation, 2020

Figure 13 Endorsements by position type by UK region or nation (2018-2020)

Source: Tech Nation, 2020

There have been proportionally more founder applicants coming from Europe, Africa, and Oceania than from Asia, North America, and South America.

Figure 14 Endorsed applicant employment type by continent

Source: Tech Nation, 2020

Applicants from India and Egypt have mostly come to work in UK tech as employees.

A large group of applicants from China and Taiwan are Academic or Researcher. From South Africa, there are more founders than employees coming into the UK as a result of our endorsement. A significant number of applicants from Israel have come into the UK as executives compared the number of applicants coming in as employees and founders. 

Figure 15 Endorsed applicant employment type by country

Source: Tech Nation, 2020

Conclusion

This report has outlined the nature of global demand for the UK as a tech destination, the changing face of the UK labour market, including a deep dive into pockets of acute employer demand for jobs and skills, and finally, looked at operational data gathered from our work as Designated Competent Body for the Global Talent Visa for Digital Technology, the Tech Nation Visa, and outlined the picture of top tech talent in the UK.

It is clear that worldwide demand is high for tech experts. People who have a track record in building and growing successful tech companies, as well as those people who show a great degree of promise to do so, are targets for many administrations around the globe.

The Tech Nation Visa signals that the UK is open to world class exceptional talent and is one of the best places for people to fulfil their tech ambitions. We have seen demand for the visa rise by 48% over just the last year, but we must ensure the UK remains a global tech magnet, and continues to be the best place to start and scale a tech business.

Scaling businesses are tackling some of the world greatest challenges, and they need talent to fuel their rapid growth. We are privileged to have been able to shed light on many of the incredible people who have received the Tech Nation Visa over recent years - their stories of migration and growth are truly inspirational.

Building Back Better starts with having access to world-class talent, and we are proud, as Tech Nation, to help make this happen.

Methodology

Tech Nation Visa administrative data

The findings reported in Tech Nation visa were based on our data collected internally in 2018, 2019, and 2020, consisting of 2,829 applications. The data contained information on the applicants’ gender, nationality, sector, skills, current position/role, etc. We removed 37 applicants from the data who indicated their nationality as being British. Also removed were 3 applicants who indicated their nationality as being one of the EU countries. The remaining data contained 2,789 applications. We added a column of continents based on the applicants’ country names. The sum of each column in any heat map in this Tech Nation visa section is 1; the heat maps are not based on absolute numbers but ratios within each column.

Adzuna data

Over 14 million rows of data was analysed, using Adzuna data covering the whole of 2019 and up to the 9th August 2020. This data contained information about advertised jobs, across 29 different categories. Summary statistics were performed on digital tech roles (IT jobs or Engineering jobs) to understand the salary offerings provided by employers.

Lower quartile, median, mean and upper quartile were calculated. Lower quartile represents the first quarter and Upper quartile represents three quarters of the way along the salary list.

Throughout the report, the median salary is used, this is to ensure we have a better understanding and accuracy of an average of all roles with digital tech offered from the very junior roles to the most senior roles. The median salary recorded has been rounded up to the nearest tens. The ‘average’ i.e. the mean is a common metric used, however this method reports more imbalanced figures as the average is skewed by the fewer higher earning roles, which does not give a realistic reflection of the salary offered for roles.

SEMrush data

SEMrush uses Google data to gather search behaviour and online browsing trends globally.

The number of searches reported are the average number of searches per month. We looked at the monthly trends for people’s searches on ‘UK tech visa’ to understand where, globally, these searches were highest and lowest. The searches related to 'UK tech visa' were also reported, this shows what else people are searching for in relation to 'UK tech Visa'.

Where to next?

Read more about the Visa, guidance for applicants and test your eligibility for the Global Talent Visa.

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