COVID-19 prompts firms to invest in IT projects

The UK’s technology sector is set to experience strong growth in 2021, with COVID-19 prompting businesses to invest in new IT projects, research from Studio Graphene has revealed.
 
The London-based digital agency commissioned an independent survey of more than 750 decision-makers within UK businesses. It found that the vast majority (70%) of companies expect their IT spend to grow in 2021, with 69% planning to launch new digital projects, tools or initiatives.
 
The survey found that two thirds (65%) of businesses intend to invest in a new field of technology in the coming 12 months, such as artificial intelligence (AI), the Internet of Things (IoT), big data or cloud computing.
 
Due to the impact of COVID-19 and the increased reliance on technology while working remotely, two thirds (67%) of businesses plan to invest more heavily in cybersecurity. 

• The majority (70%) of businesses expect their IT spend to increase year-on-year in 2021
• 69% plan to launch new digital projects 
• Two thirds (65%) intend to invest in a type of technology they are not yet using
• Half (49%) say that COVID-19 has exposed weaknesses within their business’ IT infrastructure 

Cloud technologies are also on the radar, with 64% of businesses planning to invest in this area. Similar numbers are looking to enhance their customers’ digital experience (68%), while 67% intend to purchase new collaboration tools for staff. 
 
Almost half (49%) of UK businesses said COVID-19 has exposed weaknesses within their IT infrastructure, with a similar number (48%) having eliminated software that was no longer fit for purpose since the onset of the pandemic.  
 
Says Ritam Gandhi, founder and director of Studio Graphene:

“2021 is set to be a year huge for digital transformation within businesses. And it is heartening to see firms responding positively to the challenges of the past 12 months by making bold commitments to invest in and embrace new technologies as part of their long-term vision for survival and growth. 
 
“The research demonstrates that COVID-19 has inspired – if not forced – businesses to reorient, adapt, and now put digital transformation efforts at the heart of their operations. The question, though, is whether businesses will invest in the right technologies.

“From collaborative software for staff to customer-facing platforms, off-the-shelf products to bespoke tools, any digital project must be carefully planned and thoroughly researched if UK companies are to make savvy tech decisions in 2021.”