Brexit is having a negative impact on IT spending

“British exit” shorten as ‘Brexit’ has got a lot of attention recently especially across Europe as it is just 60 days away.  A study has confirmed that progressing lack of clearness that the term carries on the UK leaving the EU is negatively affecting spending. Specific instances of such areas are outsourcing being hit.

At this point, however, some figures can now be added to those from the internet firm ISP Beaming. These came by as the firm was conducting its yearly survey of business leaders coincidently during the week that the Prime Minister’s deal to leave the EU had been dismissed by parliament.

The discovering from the survey that is, about 53% of SMEs in the United Kingdom and over 77% which is two-thirds of big enterprises have pause not less than one IT project awaiting the outcome of the Brexit.  This has become one of the primary worries for retailers and affiliates. Additionally, there has been an impact at the SoHo end of the market with 33% of smaller scale businesses also pausing spending.

According to the managing director of Beaming, Sonia Blizzard,

“it has turned out clear that the political standoff in Westminster is creating doubt and affecting investment, despite the good and bad of Brexit.”

It also turned out that, technology companies are more likely to have paused investment, notwithstanding the publicity around digital transformation the survey found.

She added that “whatever occurs, businesses need to communicate and guarantee systems are versatile, and we are spending to enhance the basics, such as, connectivity and cybersecurity.”

Education, construction and financial services were the other sectors that had reacted with an alert to what was going on with the Brexit process.

In an interview with MicroScope, co-founders of networking specialist LAN3, Steve Thompson said that making up with something different to tell their customers was a means to react to the recent market conditions. He included that, “by doing so we can go back to our customers and sell them other services and encourage customers to preserve still what they have already invested in.”

In general, the method of some firms is in line to pause IT infrastructure spending as they use the moment to hasten the push into managed services. In any case, we await what the Brexit will bring in March.