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TechMarketView has released its updated outlook for the UK Software and IT Services market. In this new forecast cycle, we update the data published in Summer last year to reflect current economic conditions and market activity in Q3 and Q4 of 2022.
As we tracked quarterly supplier results and buyer sentiment/action through the second half of 2022, it became obvious that - despite some more recent reports of a slowdown in decision making - the market has continued to expand at an extremely brisk, in part inflation, fuelled pace.
Analysts have also been able to track how SITS buyers are responding to the wider national and global economic challenges. From increasing inflationary pressures, to continuing widespread supply chain problems, through persistent skills shortages, the bumps in the road for UK organisations large and small, public, and private continue to be both sizeable and extensive. While there are distinct vertical industry and horizontal service line variations, the overall pattern shows enterprises prioritising and increasing investment in technology to accelerate the pace of digital transformation.
TechMarketView now expects that the UK SITS market in 2022 will, at a headline level, both increase 10.2% (prior forecast 8.0%) and sustain a CAGR of 6.6% (prior forecast 5.9%) through to 2025. These figures are, however, buoyed materially by the impact of rising inflation. In real terms, UK SITS demand will be limited to a still healthy 5.6% in 2022 (prior forecast 5.0%) and a CAGR of 3.9% through to 2025 (prior forecast 3.4%).
TechMarketView’s more upbeat re-assessment of the prospects for the UK SITS industry is being driven by the resilience in demand for digital transformation. TechMarketView does, however, anticipate a cooling in market fervour as we go through 2023 and beyond with the pace of SITS expenditure increase – averaging over 5% per annum for the next three years – returning to historic norms.
Read the report for the full forecast update and the details behind the data.
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Posted by HotViews Editor at '09:45' - Tagged: MarketForecasts marketdata marketanalysis
