Brexit uncertainty hits UK IT budgets
5% drop blamed on political and economic instability
IT departments in the UK are set to have their budgets tightened even further next year, thanks to the political and economic uncertainty caused by Brexit.
According to Spiceworks' 2017 State of IT report, which examines technology budget and adoption trends of IT professionals in North America and EMEA, budgets will remain relatively flat. The UK, however, stands out in the results as a location that actually expects the amount of money available to shrink, rather than remain steady.
UK respondents to the survey told Spiceworks they expect IT budgets to drop 5% in 2017 year-on-year, with the fall out of the EU referendum and the potential fallout of Brexit leading to hesitency to invest.
Not only is the political and economic uncertainty caused by the result leading companies to hold back on spending, but the lack of clarity around regulations - such as data protection - is also a concern.
Furthermore, while year-on-year revenue is expected to remain flat across North America and EMEA as a whole, IT professionals in the UK believe revenue will decrease by 10%.
John Webb, general manager of Europe at Spiceworks, said: "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.
"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."
Preparing for long-term remote working after COVID-19
Learn how to safely and securely enable your remote workforceDownload now
Cloud vs on-premise storage: What’s right for you?
Key considerations driving document storage decisions for businessesDownload now
Staying ahead of the game in the world of data
Create successful marketing campaigns by understanding your customers betterDownload now
Solutions that facilitate work at full speedDownload now