The UK’s tech market will see a significant slowdown over the next few months due to worries over Brexit and slowing GDP that inhibits tech spending, new research has said.
The latest report from Forrester estimates UK tech sector growth of 0.5 per cent this year - a major drop, with 2019 not really faring better as growth slows even further to 0.4 per cent.
Businesses and the government will continue spending on business technology revolving around winning, serving and retaining customers, and that will be the number one growth driver in the country. Still, it will slow down to five per cent this, and three per cent next year.
This, Forrester says, confirms the UK CIOs assuming a “more defensive budgetary posture”.
Even though Brexit might have you thinking that the UK is an isolated case when it comes to the slowdown in growth of the tech market, that’s not exactly the case. France, Germany, Italy, and the Netherlands, will all experience “very sharp slowdowns” next year.
The winners of 2018, in terms of growth, are the Netherlands, Portugal, Hungary and Greece with growth of more than five per cent. Spain, Switzerland, France and Sweden will grow between three and five per cent, while Belgium, Finland, Poland and the Czech Republic will see growth between two and three per cent.
“UK CIOs appear hesitant to open wallets to new tech spending,” confirms analyst Andrew Bartels who worked on the research. “This is obviously a consequence of the uncertainty created by Brexit but there are other factors that will have a negative impact on this market. It will be therefore critical,” concludes the analyst, “to prioritize cost-cutting and selectively invest in BT.”
To find out more about the future of tech markets in Europe, visit this link.
Image source: Shutterstock/everything possible