April 18, 2016
The analysis from IDC found that a so-called ‘Brexit’ vote, or a vote for the UK to leave the EU in its referendum on 23 June this year, would “have more impact on IT spend in the UK than in Europe”, adding that the “mildly negative” impacts would be reflected by a “neutral” impact in the EU. The findings came after IDC “polled its analysts on the potential impact on IT spend as a result of a ‘Brexit’, without making any direct forecasts of the overall economic impact”.
Philip Carter, IDC Europe’s Chief Analyst, commented that “we would expect a Brexit to impact UK IT spend, but the effect will not be dramatic because IT spend is governed by multiple factors which include demand drivers (such as the transition to third platform technologies) that are relatively independent of the local economic cycle”. These third platform technologies include the cloud, mobile, analytics and social media.
Douglas Hayward, IDC Europe’s Associate Vice President of the European Services team, added: “Many organisations are also locked into multi-year software licensing agreements and outsourcing deals that would be unlikely to be cancelled or radically restructured in the short term as a result of a Brexit. Much of the Europe-wide impact will only be determined in the longer run, depending on the renegotiation of EU directives and legislation, and cannot be fully predicted at present.”
Finally, Andrea Siviero, the analysts’ Senior Research Analyst for the European Industry Solutions Team, stated: “Among vertical markets, financial services, manufacturing, and retail and wholesale would be the industries whose IT spend could be more negatively affected by a Brexit decision. Restructuring the financial single market on one side and the impact on the UK current account on the other could potentially lead these three industry sectors to struggle if the UK exits from the European Union.”
The Recycler reported earlier this year that it has received questions from UK companies concerning what might happen if it leaves the EU, and Promax Imaging’s Sales and Technical Manager Tim Parsons, also Legal Consultant for UK association UKCRA, shared his perspectives on the implications, before another article saw Eversheds LLP’s Elizabeth Shepherd discuss the impact on environmental law.
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