Despite Brexit Uncertainty UK IT Outsourcing Is Growing Fast
Although outsourcing as a business term has generally been replaced by strategic partnership, there can be no denying that it is being used more and more by European companies. Recent research from the UK shows that companies are exploring IT outsourcing as a business strategy more than they have been for at least five years.
In fact, the latest data on UK spending on IT outsourcing shows that British companies spent £1.74bn ($2.26bn) in the first quarter of this year. 68% of this spending was on launching new IT projects.
The strong data is encouraging, especially with such a large proportion of new project launches. The Brexit process in the UK has caused uncertainty for any businesses that need to interact with European partners, but this data shows that at present there is still a clear appetite for technology improvement.
If Business Process Outsourcing and Customer Experience outsourcing is added into the picture then there is an even stronger message of growth coming from the UK. Q1 featured £2.73bn ($3.55bn) of overall spending on outsourcing of IT and services enabled by IT. That’s growth of 13% on the previous year demonstrating that businesses in the UK are investing heavily in IT and the services that IT supports.
The UK general election will take place in June, but it is generally assumed by most analysts that the incumbent Conservative party will continue to lead with their focus on delivering Brexit by 2019.
Although British politics appears to be confusing at present, with an election and the process of leaving the European Union all filling the headlines, it cannot be denied that executives are investing in technology. This implies that there is some confidence in the UK economy over the next few years and with growth at around the 13% mark that looks good for IT specialist partners all over Europe.