Technology

Posted on April 19, 2016 by staff

Brexit effect on tech sector would be ‘mild’ says analyst

Technology

Britain’s tech sector would only suffer mildly in the short term if the nation chooses to leave the European Union, according to analysts IDC.

IDC asked its analysts across Europe about the potential impact a Brexit would have on IT spending both in the UK and on the continent.

The consensus was that a decision to break away from the 28-member bloc on June 23 would bring about only a “mildly negative” dip.

One reason offered for the relatively minor impact was that businesses would be unlikely to cut back their growing spending on “third platform” technologies such as cloud, mobility and analytics, whatever the result of the referendum.

In the short term IDC believes firms would not look to exit existing multi-year outsourcing deals, further limiting the impact of a Brexit.

However in ‘Brexit and its Impact on IT Spending in the UK and Europe: Current Consensus Among IDC’s European Analysts’, IDC conceded that companies in the financial services, manufacturing and retail and wholesale sectors could reduce IT spending in the longer term if there is a breakaway.

IDC said it expects any impact upon the rest of Europe would be “neutral”.

Stats were not made available in the announcement for the full paid-for report.