In short, Lovelock said UK IT spending growth will certainly be negative in 2016.
“The time to recover from the drop in the pound that occurred last year was expected to be short with a recovery to 2015 levels by 1Q17,” he added.
“Post Brexit, the pound’s recovery will likely take longer making dollar-denominated IT products and services in the UK relatively more expensive for an extended period as technology providers adjust pricing upward to cover costs and protect margins.”
Similarly, Western Europe’s estimated 0.2 percent growth rate in 2016 will turn negative. However, the Brexit’s effect will not impact worldwide IT spending growth as deeply, and the current 1.5 percent growth will remain above one percent.
“Maintain your current practices and ongoing strategies,” Lovelock suggested. “The UK has embarked on a process to change, but that change is yet to be defined.”
Sign up for CIO Asia eNewsletters.