The UK information technology market has been forecast to increase at a compound annual growth rate (CAGR) of 5.26% over the period 2011-2015. One of the key factors contributing to this market growth is the increasing government support.
Furthermore, the UK IT market has also been witnessing the increasing adoption of cloud services. However, cautious spending due to market speculations could pose a challenge to the growth of this market.
The rise in the adoption of cloud services, which has been the buzz word for some time now in the Technology sector, and market consolidation, are some of the major trends contributing to the growth of the market. Thus, the IT market in the UK is currently witnessing a moderate growth after experiencing a weak financial environment during the recession of 2008-2009.
The UK Cloud Computing annual market value is predicted to grow from 2.4bn to 6.1bn by 2014. Currently 18% of UK SME business use cloud solutions but a further 30% plan implementations within the next year. By 2015 half of all new IT spending by the public sector is predicted to be on public cloud services.
One of the major drivers is the increase in government support to improve the IT infrastructure in the country. The UK government has increased investments on e-readiness and programs are being pursued to reduce the digital divide between urban and rural areas. Initiatives have been launched by the coalition government to achieve considerable savings in IT spending and renegotiate various projects. Nonetheless, such initiatives are expected to generate prospects in areas such as cloud computing and offshoring.
Independent research by Microsoft has indicated that the UK IT market could drive the creation of 2,500 new businesses and 78,200 new jobs by 2013.
Key companies dominating the UK IT market include BT Group plc, Capita Group plc, HP Co., IBM Corp, Fujitsu Ltd., Capgemini S.A., Accenture plc, Microsoft Corp, and Oracle Corp., SAP AG, TCS Ltd., and HCL Technologies Ltd.
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