Today we publish TechMarketView’s annual flagship reports. One of those is the UK Software and IT Services (SITS) Market Trends & Forecasts report 2024. In my mind it is the epitome of everything that defines and differentiates TechMarketView.
The report is founded on months and months of DATA collection and analysis by the incredible TechMarketView analyst team; the painstaking work we do - involving detailed bottom-up revenue analysis of 100s of companies - to ensure we have a firm grip on the performance of the UK SITS market. It shines a light on the DEPTH of understanding across the team, the result of 100s of conversations across the industry, with both suppliers and end user organisations. And it highlights the fact our commitment to both DATA and DEPTH enables us to cut through the tech market hype and give a realistic picture of the true level of DISRUPTION taking place. We are proud to be able to deliver high quality analysis to our clients.
In this year’s report, we highlight how our TechMarketView Annual Research Theme for 2024—Enabling Acceleration—has become increasingly pertinent as we’ve headed through the year. The pressure felt by organisations to keep pace with the speed of technological innovation and maintain competitiveness has intensified, driven by the excitement around the possibilities of Generative AI (GenAI).
Perhaps counterintuitively, this year, there has, to some extent, been a negative impact on the UK tech market. One outcome of the over-excitement has been the willingness of organisations to drop or delay other ICT transformation projects and divert attention to GenAI. However, to date, the vast majority of those GenAI activities remain in the advisory or experimentation stage. The UK SITS market shrank in real terms in 2023 with excitement yet to translate into a market boom. So far, only a handful of organisations – notably the hyperscalers have materially benefited.
As the TechMarketView team considers what the future holds for the UK tech market, we’ve identified (and coined the term) the GenAI Dividend. Our analysis identifies the level of spend on programmes and projects focused on GenAI deployment, revealing that it will remain a drop in the ocean for some years to come. However, we also look in detail at how GenAI has become a catalyst encouraging organisations to take a wider and deeper look at their entire ICT estate. This to ensure they can, in the future, leverage a range of emerging technologies, including but not limited to GenAI. It is this ‘spade work’ (for want of a better term) that is set to drive higher growth in the UK SITS market during our forecast period. The GenAI Dividend is the additional spend (over and above that which we were previously expecting before the current GenAI hype) that will transpire as organisations seek to strengthen their digital and data foundations.
TechMarketView subscribers can find out more about the GenAI Dividend and the areas of the market most likely to be impacted by downloading the UK SITS Market Forecasts 2024 report today. If you are not yet a subscriber or are unsure if your organisation has a corporate subscription, please contact Belinda Tewson, who will be more than happy to help.
Posted by Georgina O'Toole at '10:14'
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