Tuesday 13 September 2022

*NEW RESEARCH* The impact of economic turbulence on UK SITS

Report coverWe are in a time of unprecedented uncertainty. UK tech suppliers are faced with operating in an environment that is defined by political and economic turbulence.

Even in the relatively short time since we inked our forecasts for the UK software and IT services (SITS) market in June (see here), the situation has become noticeably more worrying. There appears to be no end to the war in Ukraine, the inflation rate continues to rise, the cost of living is taking its toll on households, businesses are facing skills shortages and spiralling costs, and the UK Government is set to take on a larger debt burden.

It's not surprising that we are being asked how this is impacting our outlook for the UK tech market. The truth is that our view is evolving as we see more evidence of recent company performance, as we learn more about the plans of Liz Truss’ Government, and as economic forecasts are updated. We will publish a revised set of forecasts in the next couple of months.

In the meantime, our latest report - UK SITS Market 2022-2025: Impact of economic turbulence | TechMarketView – provides our current view on how the backdrop is likely to impact the performance of the UK SITS market between 2022 and 2025. Few (if any) would be able to find a sensible argument to suggest it won’t be impacted at all. Technology is so integrated into our businesses and our lives that the market will, inevitably, feel the effects of a recession.

The big question is: how much will it be affected? In line with TechMarketView’s 2022 Research Theme "Building Resilience", how resilient will our sector be to the strong headwinds? TechMarketView subscribers can find out now by downloading our research note.

If you are not yet a subscriber or want to find out if your company subscribes, please contact Deb Seth.

Posted by Georgina O'Toole at '21:33' - Tagged: forecasts   growth   SITSmarket   economy