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TechMarketView Foundation Service clients are, today, treated to our eagerly anticipated annual review of the UK Software and IT Services market: UK SITS Market Trends & Forecasts 2020-2023.
TechMarketView followers will know that our Research Theme for 2020 is ‘Digital Chaos’. Little did we know that, as we entered a new year, we would see quite the level of chaos that has transpired, albeit not just from a digital perspective.
In such an extraordinary year, defined by the COVID-19 pandemic and the associated global lockdowns, TechMarketview’s expert analyst team has had to consider the extreme uncertainty that remains for us all.
That’s why we have created UK software and IT services (SITS) market forecasts for the next four years based on two market scenarios.
Scenario A is based on our most optimistic view of prospects for the UK SITS market. It is founded on the presumption that the UK SITS market will suffer a relatively shallow reverse in fortunes during 2020 as a result of the pandemic, and will rebound fairly promptly thereafter, as the wider UK economy enjoys a V-shaped recovery.
Scenario B takes a far more cautious view of the prospects for future growth and is based on the UK SITS market experiencing a sharp decline during 2020. It assumes that both technology spend and the wider UK economy will remain in recession during 2021, with the UK SITS market not returning to growth until 2022. If this outcome comes to pass, by 2023 the UK SITS Market will be worth approximately £4bn less than under our more optimistic, Scenario A.
The scenarios will determine how quickly confidence will return. But regardless of the pandemic’s progression and the resultant impact on the UK economy, change is coming. In fact, it’s already here.
Over the last few months, organisations across all UK industries have, supported by their ICT suppliers, responded to unprecedented circumstances. With rapid responses required, many of the barriers that are often accused of slowing down IT and digital progression were knocked down.
As we are all painfully aware, the pandemic is still with us. However, as the dust settles on the initial wave, organisations are reflecting on their experiences. In both the public and private sectors, organisations have had their eyes opened to their vulnerabilities. And at the same time, they are looking at the potential of digital technologies through a different lens. Old business assumptions are being put aside as they press the ‘reset’ button.
Digital developments undertaken during the pandemic will have added to the ‘Digital Chaos’. Now, there will be a strong desire to leverage past investments while accelerating change. Suppliers must recognise the fundamental shift in their clients’ attitudes, and help them ‘reset and reimagine’, ensuring that technology remains at the heart of the agenda to get us back living our lives in the ‘new normal’.
To make sure you are prepared to respond to in the months ahead, download UK SITS Market Trends & Forecasts 2020 now. If you are not yet a subscriber, please contact Deb Seth to find out how to gain access to this invaluable research.
And don’t forget, you can engage directly with the TechMarketView analyst team through a virtual engagement – see here. We can design the engagement to suit your organisation’s needs.
Posted by Georgina O'Toole at '09:23' - Tagged: markettrends forecasts covid-19 MarketForecasts
