IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Brexit uncertainty puts digital transformation on hold

Around 94% of UK businesses say Brexit has impacted on IT decision making

map of brexit

New research has found that 90% of UK businesses are optimistic about growth over the next 10 months, although the vast majority also said the Brexit vote has impacted their decisions for IT investments, with some freezing budgets entirely. 

A report released this week by cloud and network provider Interoute revealed that 63% of British firms are planning for significant growth over the next year, while a further 27%, although taking a conservative outlook, also expect to grow.

However 96% of firms agreed that the current economic climate, coupled with the fallout from the vote to the leave the European Union, has made IT investments difficult. Around 40% said that Brexit made them nervous to invest in any long-term IT projects, while a further 38% said it has forced to them to adopt cloud-based solutions to allow for flexibility in their decision making.

In the survey of 120 UK businesses, only 6% felt that the Brexit vote and the current economic climate have had no impact on IT decisions.

Digital transformation seems to have been hit the hardest, as the majority of firms (52%) believe the changing political landscape has made it difficult to invest and achieve long-term aims. While 24% said they were actively pursuing digital transformation initiatives, almost as many (23%) said they had cancelled at least one transformation project, with a further 18% putting budgets on hold entirely.

There is some good news, however, as the survey found that the majority of businesses remain optimistic about the change, taking it as an opportunity to invest in new infrastructures. Over 60% said they were developing new infrastructures to accommodate for the uncertainty and remain competitive, the majority of which includes migrating a significant portion of business activities to the cloud.

Commenting on the study, Interoute CTO Matthew Finnie said: "This study proves that most British enterprises are proactively making technology decisions and are prepared to pivot quickly to remain competitive in the face of a changing and uncertain market."

"This requires an ICT infrastructure that enables, not inhibits, change. Rather than handcuffing an organisation to a specific vendor or inflexible infrastructure choice, it is about ensuring the platform and provider you choose gives you the freedom to change and adapt as the market does."

The majority of businesses surveyed (73%) also expressed the importance of full integration between the cloud and network, yet 52% said they faced significant challenges when trying to integrate legacy systems, which remains a key priority for most digital transformation projects.

Featured Resources

2023 Strategic roadmap for data security platform convergence

Capitalise on your data and share it securely using consolidated platforms

Free Download

The 3D trends report

Presenting one of the most exciting frontiers in visual culture

Free Download

The Total Economic Impact™ of IBM Cloud Pak® for Watson AIOps with Instana

Cost savings and business benefits

Free Download

Leverage automated APM to accelerate CI/CD and boost application performance

Constant change to meet fast-evolving application functionality

Free Download

Recommended

How to delete a Facebook business page
social media

How to delete a Facebook business page

5 Sep 2022
Best business tablets 2022
Hardware

Best business tablets 2022

27 Jul 2022
CMO job description: What does a chief marketing officer do?
Business strategy

CMO job description: What does a chief marketing officer do?

9 Jun 2022
CFO job description: What does a chief financial officer do?
Business strategy

CFO job description: What does a chief financial officer do?

9 Jun 2022

Most Popular

What's powering Britain’s fibre broadband boom?
Network & Internet

What's powering Britain’s fibre broadband boom?

3 Feb 2023
Dutch hacker steals data from virtually entire population of Austria
data breaches

Dutch hacker steals data from virtually entire population of Austria

26 Jan 2023
Yandex data breach reveals source code littered with racist language
data breaches

Yandex data breach reveals source code littered with racist language

30 Jan 2023