Brexit will only cause “mildly negative” dip on IT spending

IT spending in the United Kingdom would only experience a “mildly negative” dip if the country chooses to leave the European Union, according to IDC following a poll with EU’s analysts.

The “mildly negative” impact of the UK action, or also called Brexit however, was not quantified in IDC’s three-pager paper entitled ‘Brexit and its Impact on IT Spending in the U.K. and Europe: Current Consensus Among IDC's European Analysts.’

Nonetheless, IDC analysts stated that growing spending on cloud, mobility, and analytics platform, dubbed as “third platform” technologies, will become a factor towards the mild impact of a Brexit.

IT firms are also expected to not to rush to discontinue multi-year software and/or outsourcing deals amid the Brexit. But once discontinuation of these deals start, the financial services, manufacturing, retail and wholesale sectors may struggle to maintain current levels of IT spending.

Amid all predictions, it would be hard to tell the effects of the Brexit before the negotiations even occur.

"Much of the Europe-wide impact will only be determined in the longer run, depending on the renegotiation of EU directives and legislation, and cannot be fully predicted at present,” Douglas Hayward, Associate Vice President at IDC's European Services team said.

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