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The UK software & IT services (SITS) market presents a paradox. Viewed in its entirety, it has stagnated in real terms. Barely a day goes by, however, without more news of technology’s transformational impact on every sphere of human activity. Tech giants now dominate lists of the world’s largest companies and, every year, approaching two million new tech start-ups join the global digital gold rush. The anecdotal evidence suggests that we should be witnessing market growth rates not seen since the halcyon days of Y2K and the dotcom boom.
In this paper, we look afresh at this conundrum to square the circle and provide insights into the dynamics that are reshaping the SITS universe. Complementing the traditional horizontal tower view with the additional lens of ‘Legacy vs New’ reveals a very different picture of the forces at play. In this report we analyse how the balance of the market is evolving, identify the impacts that this is having on the suppliers within it, explore the possibilities for growth acceleration, and consider the essential attributes of tomorrow’s SITS winners.
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