TechMarketView warns that recent US tariffs will affect more than the sectors directly hit, such as the automotive industry, projecting subdued growth for software and IT services. The overall market forecast was lowered to 5.3% annual growth, with real-term growth at just 2.9%. Sectors like financial services, which are not primary tariff targets, may experience indirect impacts, leading to cuts in discretionary spending and delayed tech investments. The report signals a challenging funding environment for tech startups as economic uncertainty looms.
The UK's two largest SITS verticals - public sector and financial services - together comprise nearly 50 percent of the market and face significant indirect impacts despite not being primary tariff targets.
Market volatility and economic uncertainty will drive cuts to discretionary spending, though strategic technology investments with clear ROI will continue.
Tech departments in financial services companies should expect discretionary spend reductions, delayed transformation initiatives, and postponed investment in experimental technologies.
TechMarketView's forecast for the SITS sector has been downgraded due to tariffs, projecting only 2.9 percent real-term growth as investment constraints emerge.
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