Just 12 per cent of tech businesses believe the outlook for the sector will improve over the coming year as business confidence plummets
FREMONT, CA: A third of tech companies that are members of the trade group techUK think that the future of the industry will get worse. Compared to more than 70 per cent in February and October 2021, when the Covid-19 pandemic was still impacting the economy, only 12 per cent of tech organisations questioned thought the sector outlook would improve over the following 12 months.
In comparison to earlier waves of the Digital Economy Monitor study, sales performance, headcount predictions, and investment plans were all lower. The largest effects for techUK members were rising labour and energy prices. However, the impact of tight labour markets in the UK and the high demand for people with digital skills was greater than rising energy prices. Maintaining investment and growth objectives and gaining access to talent and experienced personnel will concern over the upcoming months.
When asked what the government can do to assist IT companies manage the current problem, the most often suggested response was to implement a cap on business energy rates similar to the one that already exists for households (42 per cent).
“The technology sector is resilient and has overcome major challenges such as Brexit and Covid-19, but recent economic headwinds, rising energy and staff costs, as well as longer-term concerns over access to talent, are starting to bite,” said Neil Ross, Associate Director of Policy at TechUK, which represents 900 tech firms. It is predicted that the UK technology sector will boost its GDP by Euro 41.5 billion by 2025. In this most recent rolling survey, 75 techUK members took part; 39 per cent were major businesses, and 61 per cent were SMEs.
