UK IT market to grow at CAGR of 5.26 pc over the period 2011-2015

DUBLIN, IRELAND: Research and Markets has announced the addition of the "IT Market in the UK 2011-2015" report to their offering.

One of the key factors contributing to this market growth is the increasing government support, said a company release. The IT Market in the UK has also been witnessing the increasing adoption of cloud services. However, cautious spending due to market speculations could pose a challenge to the growth of this market.

Key vendors dominating this market space include BT Group plc, Capita Group plc, HP Co., and IBM Corp.

Other vendors mentioned in the report: Fujitsu Ltd., Capgemini S.A., Accenture plc, Microsoft Corp, and Oracle Corp., SAP AG, TCS Ltd., and HCL Technologies Ltd.

Commenting on the report, an analyst from TechNavio's IT Services team said: ''The rise in the adoption of cloud services, which has been the buzz word for some time now in the Technology sector, and market consolidation, are some of the major trends contributing to the growth of the market. Thus, the IT market in the UK is currently witnessing a moderate growth after experiencing a weak financial environment during the recession of 2008-2009. It is expected to sustain modest growth during the forecast period.''

According to the report, one of the major drivers is the increase in government support to improve the IT infrastructure in the country. The UK government has increased investments on e-readiness and programs are being pursued to reduce the digital divide between urban and rural areas.

Initiatives have been launched by the coalition government to achieve considerable savings in IT spending and renegotiate various projects. Nonetheless, such initiatives are expected to generate prospects in areas such as cloud computing and offshoring.

Further, the report also discusses that one of the major challenges for this market is the cautious spending due to market speculations.