This is according to the latest forecast from Canalys
The UK’s decision to leave the European Union (EU) last week (June 24) could cause total IT spend this year to drop from £75 billion to £68 billion.
Last week’s referendum saw 51.9 per cent of the UK vote in favour of leaving the EU. Canalys’ forecast of declining spend is based on predictions that UK companies will cut expenditure to reduce the risk of losing business.
This could further drop to £64 billion in 2017 as a result of lower IT budgets for a tougher year, according to Canalys. It added that the consequences of leaving the EU on UK businesses will be unclear for months to come.
Canalys research analyst Claudio Stahnke said: “Trade disruption, political instability, recession, stagflation, talent pool reduction and the collapse of the EU are all potential outcomes that need consideration.
“The UK is taking a big gamble on its future. The unprecedented nature of the move to leave makes the true extent of the outcome an unknown.