Brexit: We’re all doomed on IT spending claims Canalys

As a result of Brexit, IT spending in the UK will be “hit hard” due to uncertainties and movements to reduce risk, said analyst Canalys.

The analyst is forecasting a spending decline of up to 10 percent in 2016, with the sales dip continuing in 2017.

The weak pound, unless it rallies, will also result in “immediately higher” technology prices, added Canalys.

“Canalys’ IT spending forecast, based on the UK remaining in the EU, was in the range of $90 billion to $100 billion in the UK. Canalys now expects this to fall by up to 10 percent in 2016, based on the public sector and businesses cutting expenditure to reduce risk,” said analyst Matthew Ball.

“The outlook for 2017 could be even worse, with up to a 15 percent decline as IT budgets are set lower on the prediction of a tough year ahead and ongoing uncertainty.”

In the “short term”, said Ball, contracts will have to be renegotiated and proposals re-quoted due to a fall in the pound. “Any new activity will be suspended until rates stabilise”, claimed Ball.

@AntonySavvas