Brexit uncertainty hits UK IT budgets

5% drop blamed on political and economic instability

Brexit

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.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

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."

Featured Resources

Digitally perfecting the supply chain

How new technologies are being leveraged to transform the manufacturing supply chain

Download now

Three keys to maximise application migration and modernisation success

Harness the benefits that modernised applications can offer

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

The 3 approaches of Breach and Attack Simulation technologies

A guide to the nuances of BAS, helping you stay one step ahead of cyber criminals

Download now
Advertisement

Recommended

Visit/business-strategy/startups/354539/uk-tech-investment-jumps-44-despite-brexit-uncertainty
startups

UK tech investment jumps 44%, despite Brexit uncertainty

15 Jan 2020
Visit/cyber-security/34763/the-eu-calls-for-cyber-security-pact-with-post-brexit-uk
cyber security

The EU calls for cyber security pact with post-Brexit UK

6 Nov 2019
Visit/business-strategy/34447/can-the-uks-tech-sector-still-attract-investment-after-brexit
Business strategy

Can the UK tech sector still attract investment post-Brexit?

19 Sep 2019
Visit/business-operations/33930/it-pro-panel-the-truth-about-talent
Business operations

IT Pro Panel: The truth about talent

1 Jul 2019

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/operating-systems/microsoft-windows/354526/memes-and-viking-funerals-the-internet-reacts-to-the
Microsoft Windows

Memes and Viking funerals: The internet reacts to the death of Windows 7

14 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020