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Services and software sector set for slow growth this decade

Simon Quicke

The prospects for the next decade in terms of IT growth in the UK IT services and software market look limited with one of the gurus of the industry predicting that growth over the next ten years will be slow.

Richard Holway, chairman of TechMarketView, has already called the last ten years right and although not many will be cheered by his latest prediction he expects things to remain tight for the foreseeable future.

That prediction is based on several factors including the lack of new business that is coming down the pipeline for most industry players and the ongoing caution by those at the coalface.

Although the tap is being turned back on the analyst house described the current state of affairs as "more a dribble rather than a deluge".

"What will happen once the delayed/cancelled/curtailed projects have finally flushed through the pipeline? What's following on behind them? As yet, not very much. In other words, at current course and speed, there is a real risk we could well be in for a 'double dip' in the UK SITS market in 2011," stated the analyst house.

As a result the expectation from TechMarketView is that the services and software sector will grow slower than GDP over the next decade.

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