IT professionals cautiously optimistic on 2014 revenues, IT budgets, and hiring plans

Spiceworks has announced the results of a new survey analyzing the perceptions small-to-medium enterprise (SME) and large organization IT professionals have of the United Kingdom (UK) economy, government policies and the perceived IT skills gap. Despite new technology initiatives and policies aimed at driving growth, most IT professionals feel the UK remains in a recession. However, IT professionals, particularly those in large organizations, are optimistic that revenue, IT budgets, and hiring growth will materialize in 2014. The study “Making a comeback, UK?” includes responses from more than 300 IT professionals in UK SMEs and large organizations.

Friday, 6th December 2013 Posted 11 years ago in by Phil Alsop

“The last five years have been challenging for the UK economy and the technology industry at large,” said Mark Brown, director, Spiceworks UK. “However, today’s survey highlights a growing sense of optimism among IT professionals that the UK economy is improving and investments in technology are paying dividends.”

According to the report, IT professionals in large organizations, those with more than 1,000 employees, are far more optimistic the UK has left the recession than their SME counterparts. Only 30 per cent of SME IT professionals believe the UK has exited the recession while 49 per cent of large organization IT professionals believe the recession is behind them. As expected, IT professionals in large organizations are also more optimistic the UK will return to pre-crash levels within the next five years.

Revenue growth expected to outpace IT budgets
Despite lingering concerns regarding the state of the UK economy, IT professionals in both large organizations and SMEs are optimistic about revenue growth opportunities in 2014. Sixty-four per cent of IT professionals in large organizations and 50 per cent of IT professionals in SMEs expect revenues to increase in 2014. While the majority of IT professionals expect higher revenues, they’re less optimistic they’ll see higher IT budgets. Thirty-five per cent of IT professionals in large organizations and 33 per cent of IT professionals in SMEs expect an IT budget increase in 2014. Forty-three per cent and 30 per cent of large organization and SMEs respectively are expecting their IT budget to remain flat.

Hiring expected to increase despite perceived IT skills gap
IT professionals have mixed feelings about hiring plans for 2014 and if the UK has enough technology workers to support economic growth. Twenty-seven per cent of large organization IT professionals and 39 per cent of IT professionals in SMEs expect headcount to increase next year. When asked if the UK had enough technology workers to support growth, less than half of respondents in large enterprises and SMEs are confident the UK has the needed IT skills.

Government policies seen as key to driving growth
IT professionals in SMEs and large organizations agree on the government policies they believe will spur growth in 2014. Greater investment in technology education and skills, workplace training, and a focus on supporting technology businesses were cited as policies that would support growth. IT professionals are also united in the biggest threat to growth in the UK economy – increased government cutbacks. However, opinions differed when asked about the UK government’s superfast broadband initiative already in development. Forty-nine per cent of SME IT professionals see it as a growth-supporting policy compared to only 19 per cent of large organization IT professionals.