Brexit hits global IT spending for 2016

Leave vote turns modest IT outlay growth into a decline


Brexit will cause worldwide IT spending to decline over the course of 2016, according to Gartner.

"The immediate impact of Brexit has caused modest growth in IT spending to turn negative for 2016," said John-David Lovelock, research vice president at Gartner.

"Without the UK, global IT spending growth would have been modestly positive at 0.2% in 2016, but with the UK included, IT spending is expected to decrease 0.3%. The immediate impact of the British pound will also cause the IT spending patterns to shift as prices for IT will increase."

Although it's good news for some countries in Europe, such as Germany and France, the UK won't be so lucky, with growth not reflecting the rest of the world.

Advertisement - Article continues below
Advertisement - Article continues below

"There are other countries, such as the Netherlands, Luxembourg and Ireland that are also increasing their IT spend to contend as a viable alternative to banks in the UK," Lovelock added. "We are seeing examples of many banks in talks with these countries to examine the possibility of moving their operations outside of the UK."

On a worldwide level, Gartner is predicting software spending will have the biggest impact on worldwide IT spending, with growth up by 6% by the end of the year globally. Over 2017, it will increase more - by 7.2% - over 2017, offering up an impressive rate of growth.

Worldwide IT spending will top 2.85 trillion in 2017 as demand for software and IT services spending increase across the board, the research firm said.

IT services will also see gains, up 3.9% in 2016 and then 4.8% in 2017, to reach a total value of $943 billion (768 billion).

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

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

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now



UK tech investment jumps 44%, despite Brexit uncertainty

15 Jan 2020
cyber security

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

6 Nov 2019
Business strategy

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

19 Sep 2019
Business operations

IT Pro Panel: The truth about talent

1 Jul 2019

Most Popular

data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Microsoft Windows

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

14 Jan 2020

Openreach offers free full-fibre installation for thousands of homes

14 Jan 2020