Brexit is unsurprisingly messing with business confidence and will inevitably impact IT projects over the next two-to-three years as the UK begins the process of negotiating its way out of the EU. So IDC is forecasting weaker infrastructure and tech services expenditure to force IT spending growth in the UK down to just 1% this year, a sharp drop from 6% in 2016.
The rest of Europe remains fragile too, and slack consumer spending will be a drag on growth in many countries during an extended period of uncertainty
"Europe is a wild card in terms of downside risks," says Stephen Minton, vp in IDC's customer insights and analysis group. "Brexit carries a wide range of potential scenarios, and our current baseline forecasts don't represent the worst case.”
Global ICT spend overall will spike 3% this year to $3.5 trillion, up slightly on last year's 2% rate. This is mainly due to improvements in emerging markets and a general pick-up in infrastructure spending. The cloud will continue to drive much of the ICT spending story, as more businesses move to adopt cloud-based services.