$35 billion of UK IT projects have stalled due to Brexit uncertainty

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UK IT projects worth more than $35 billion are on hold, due to the uncertainties regarding Brexit, a new report from Beaming, the business ISP claims. Almost a third of UK businesses (1.7 million of them), have paused their IT initiatives.

That includes half of small and medium-sized businesses (53 per cent) and more than two thirds of large organisations (77 per cent). Almost a third (29 per cent) of micro businesses have done the same.

This “hold your fire” attitude is most prominent among technology companies, with 81 per cent of them holding on their investment money. Financial services (68 per cent) education (64 per cent), construction (60 per cent) and manufacturing (57 per cent) are also worth mentioning.

“Regardless of the rights and wrongs of Brexit, it has become clear that the political stalemate in Westminster is creating uncertainty and affecting investment,” commented Sonia Blizzard, managing director of Beaming. "Whatever happens, businesses need to communicate and ensure systems are resilient, and we are seeing spending to improve essentials such as connectivity and cyber security.”

Predictive maintenance solutions provider Senseye says it has felt the effects of Brexit uncertainty on its own skin. The company’s CEO says “several major manufacturers” were interested in trialling the company’s products “but are unwilling to commit to new innovation projects without more certainty around their European supply chains and export outlook.”

Image source: Shutterstock/ESB Professional