UK tech sector to grow 4 times faster than GDP in 2015

Technology companies in the UK will grow four times faster than GDP, a survey from Barclays found.

A survey of chief executive officers and tech firm owners found that they expect their business to grow around four times more than the expected economic growth of the UK.

The independent research from Barclays found that business leaders in technology companies forecast growth of 11 per cent in 2015, way above the expected expansion of 2.6 per cent in the UK’s GDP.

The UK’s tech scene is blossoming and there are stacks of recent data to support it. Just last week, Tech City released a report that highlighted the huge growth in the number of digital companies across the whole nation. If this sector achieves the remarkable predictions of growth then the economy as a whole should receive a huge boost.

In fact, nearly a tenth of firms surveyed predicted growth of over 20 per cent in 2015 and even more expected this level of growth in 2016.

“The fact that many firms are expecting further growth in 2016 shows that this trend isn’t transient and the UK is a real launch pad for innovative tech businesses,” said Sean Duffy, managing director and head of Barclays’ technology, media and telecommunications team.  

“Investors are seeing the UK as an international talent magnet and a platform to grow or launch their business for a number of compelling reasons, including the culture, light-touch regulation, supportive government policies and access to finance.”

The survey also quizzed a number of firms that saw strong growth in 2014, in an attempt to understand the reasons behind their success. A large proportion (79 per cent) of the firms surveyed cited strong leadership as the key to achieving their growth last year.

Looking ahead, in order to maintain or accelerate growth, businesses placed particular emphasis on using marketing and advertising to complement the strong leadership that saw them succeed.