2013-02-28 12:17:15 - Fast Market Research recommends "United Kingdom Information Technology Report Q1 2013" from Business Monitor International, now available
BMI View: UK IT spending is expected to reach US$88.1 in 2013, down 5%, with IT investments constrained following the UK's return to recession in early H112. UK PC sales drifted back into negative growth territory in Q212, after what had turned out in Q112 to be a single quarter of positive growth. The overall outlook for UK IT spending in 2013 is one of modest single-digit growth, with the UK unable to remain immune from the problems affecting other major European markets. Although Q412 brought new public sector IT contracts from the Home Office and other organisations, the UK IT services market remains overshadowed by the impact of government cuts and a moratorium on projects with a value of
more than GBP100mn.
Headline Expenditure Projections
Computer hardware sales: US$19.2bn in 2012 to US$19.8bn in 2013, +3% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification after the PC market reported negative growth in Q212.
Full Report Details at
- www.fastmr.com/prod/541195_united_kingdom_information_technology ..
Software sales: US$12.1bn in 2012 to US$13.7bn in 2013, +13% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modifications, but software still comprises around 70% of cloud spending.
IT Services sales: US$52.7bn in 2012 to US$56.4bn in 2013, +7% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification with price deflation and an environment of fiscal retrenchment meaning difficult trading conditions for vendors.
Risk/Reward Ratings: The UK's score was 82.9 out of 100.0. The UK ranks first in our latest Europe IT RRR table, still ahead of Germany and Sweden, and despite the poor performance of its PC market in H112.
Key Trends and Developments
* A major factor likely to restrain demand in 2012 is the government's tough austerity programme, which has targeted an average of 19% cuts across departments over a four-year period through to 2015.However, 2012 brought a number of new projects from Her Majesty's Revenues and Customs (HMRC), the Home Office and other departments. The UK cloud market remains small, at an estimated GBP1bn in 2012, but BMI forecasts it could account for 10% of total UK IT spending by 2016. The government's efficiency drive may create opportunities in areas such as cloud computing and offshoring, where pilots have been launched. While the centralised health IT provider model has been cancelled, individual components of the plan will still be implemented. The government has also announced plans to liberalise its procurement process and increase the use of open-source software in government.
* Evidence suggests that UK organisations are currently evenly split between those continuing to seek cuts in IT costs and those who plan to expand their IT spending, despite the economic conditions. Private sector budgets remain tight and credit availability is another constraint on activity. However, in 2012, there were indications that delays in upgrades were fuelling more spending on maintenance and warranty services. There is also considerable pent-up demand for ERP solutions.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Business Environment
- Table: Table: UK IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated)
- Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2010-2017
- Economic Outlook
- Table: United Kingdom - Economic Activity
Industry Risk Reward Ratings
- Industry Risk/Reward Ratings
- Table: Europe Risk/Reward Ratings, Q113
Industry Trends And Developments
- BT Global Services
- Regional Overview
- Regional IT Overview
- IT Penetration
- Market Growth And Drivers
- Sectors And Verticals
- Table: The United Kingdom's Population By Age Group, 1990-2020 ('000)
- Table: The United Kingdom's Population By Age Group, 1990-2020 (% of total)
- Table: The United Kingdom's Key Population Ratios, 1990-2020
- Table: The United Kingdom's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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