Brexit is going to shrink IT budgets for organisations in the UK, according to a new report by Spiceworks, the professional network for IT. In its 2017 State of IT report, it says that budgets will remain ‘relatively flat’ in North America and the EMEA region (Europe, Middle East, Africa) but the uncertainty surrounding Brexit will result in somewhat negative results in the UK.
Budgets are expected to decrease by five per cent, the report says, adding that 60 per cent of EMEA respondents believe IT headcount will remain the same. A third (33 per cent) of IT pros in EMEA believe global political and economic turmoil affects IT spend, while more than half (51 per cent) will reconsider where to store their data. More than third (35 per cent) are also reconsidering what countries they purchase tech from, as well.
“In addition to more conservative IT investments, the expected fallout from political and economic instability caused by issues such as Brexit has led to many questions marks around the future of data governance in the UK and the country’s ability to employ skilled workers and influence the global IT market,” said John Webb, general manager of Europe at Spiceworks.
“IT pros in EMEA, particularly in the UK, will have to do more with less in the coming year as belts are tightened due to fluctuating exchange rates, regulation changes, and other unforeseen challenges.”
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