IT market to grow in 2007
European IT industry board claims business confidence in the UK tech market is on the up
Business confidence in the UK IT market has increased which will pave the way for sustained growth in 2007, according to a report from industry trade body the European Information Technology Observatory (EITO).
Overall IT market growth in the European Union (EU) is predicted to be around 3.1 per cent in 2006 and 2.9 per cent in 2007, according to EITO. The UK market alone is on a similar track with 3.3 per cent growth predicted for 2006 and 2.9 per cent growth anticipated in 2007.
“This improved economic outlook is fostering an increased business confidence, which is leading to more investment, especially in the areas of software and IT services,” the report said.
Key drivers for overall UK growth include infrastructure upgrades, mobility and storage consolidation, as well as security and professional services.
As a result, EITO claimed growth in overall IT spending in the UK will hit 4.1 per cent in 2006 and 4.2 per cent in 2007.
Nitin Joshi, founder of channel advisory service ChannelMoney, had a more cautious message: “While services are the new black, many VARs are still in the red. The increased spend is due to the technology that helps professionals to work more efficiently.
“As for the predicted growth for 2007, I don’t think that’s in Santa’s bag,” he said.
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