Market Trends: UK software and IT services

Market Trends: UK software and IT services

We have witnessed nothing in 2006 to change our long-held view that the UK S/ITS market is fundamentally mature and set to be characterised by mid-single-digit growth for the foreseeable future.

This report looks at the market for software and IT services in the UK. It details Ovum’s estimates and forecasts of the sizes of the market and its key sub-segments, as well as highlighting key market trends and drivers from both the end-user and supplier perspectives.

This analysis is intended to give the reader an understanding of current and future changes in the UK S/ITS environment, and to help formulate plans and strategies appropriate to the opportunities and threats that these are creating and will create. It is written in conjunction with four other reports published in January 2007, which focus specifically on market trends in BPO, infrastructure services, software and project services & application outsourcing.

Table of contents

Key trends in UK software and IT services

Demand-side trends

Supply-side trends

The importance of the wider economy

Trends by sub-segment

Software
IT services

Market forecasts

Summary and recommendations

Figure 1 Projected GDP and inflation rates, 2006 to 2010
Figure 2 UK S/ITS market size and forecast
Figure 3 Growth forecasts for key S/ITS sub-segments
Figure 4 Market sizes and forecasts for key S/ITS sub-segments (£ billion)
Figure 5 Market size and revenue growth opportunity by key S/ITS sub-segment