
Global IT spending forecast
setto continue rising
Worldwide technology spending is
expected to rise to $5 trillion in 2024, an
increase of 8% from 2023, according to
the research firm Gartner, as organisations
invest in efficiency and optimisation
projects.
1
For Europe, the picture is
evenmore positive, with IT expenditure
inthe UK, Germany and France forecast
togrow by 9.8% in 2024, to $588 million.
2
“ITspending in Europe continues to be
recession-proof,” aGartner analyst noted.
Cloud and cybersecurity
software and services to
leadtheway in 2024/25
In keeping with the trend in recent years,
software and IT services – BTG’s main
business areas – will continue to be the
two biggest areas of technology, with
each expected to see robust growth. In
the UK, revenue from enterprise software,
which is mainly cloud-based, is projected
to grow by 7.5%
3
annually, between 2024
and 2028, the research company Statista
said. Over the same period, spending
onIT services should increase by 8.8%.
4
Meanwhile, revenues in the public cloud
1 gartner.com/en/newsroom/press-releases/2024-04-16-gartner-forecast-
worldwide-it-spending-to-grow-8-percent-in-2024
2 gartner.com/en/newsroom/press-releases/2023-11-09-gartner-forecasts-it-
spending-in-europe-to-record-9-percent-growth-in-2024
3 statista.com/outlook/tmo/software/enterprise-software/united-
kingdom?currency=GBP
4 statista.com/outlook/tmo/it-services/united-kingdom
5 statista.com/outlook/tmo/public-cloud/united-kingdom
6 statista.com/outlook/tmo/cybersecurity/united-kingdom
7 blog.checkpoint.com/research/check-point-research-2023-the-year-of-mega-
ransomware-attacks-with-unprecedented-impact-on-global-organizations/
8 gartner.com/en/newsroom/press-releases/2023-10-16-gartner-says-cios-must-
prioritize-their-ai-ambition-and-ai-ready-scenarios-for-next-12-24-months
9 gartner.com/en/newsroom/press-releases/2023-10-11-gartner-says-more-than-80-
percent-of-enterprises-will-have-used-generative-ai-apis-or-deployed-generative-
ai-enabled-applications-by-2026
and cybersecurity markets are expected to
rise by 9.46% and 12.6% respectively.
5,6
The investment in security stems from the
ever-increasing threat from cyberattacks,
with one in ten organisations worldwide
hit by attempted ransomware attacks
in2023, up from one in 13 in 2022,
according to Check Point Research.
7
AI to help drive longer-term
growth
Interest in AI surged in 2023/24, and while
it is not yet a major spending priority for
many businesses, it is expected that it
soon will be.
2
The usefulness of AI as a
productivity tool is reasonably well known.
But it is the more advanced ‘generative
AI’ (GenAI), which has the power to create
output that will be ‘game-changing’ and
will ‘disrupt business models and entire
industries,’ Gartner says.
8
The research
company predicts that, by 2026, more
than 80% of businesses will have used
GenAI alongside their human workforce.
9
At BTG, we’re already using Microsoft’s
Copilot AI tool internally, and we’re
determined to lead the way in helping
customers to prepare for and implement
the right AI solutions for their needs.
Weexpect that this fast-evolving
technology will help drive our growth
forthe next decade, and beyond.
A focus on cost, value and agility
While IT spending has persisted in the
challenging economic environment,
customers have increased their scrutiny
ofpotential new projects, which can take
longer to get approved. There is a strong
focus on maximising value and, at the
same time, controlling costs. This plays to
our strengths, because we always focus on
what organisations need, not what we want
to sell. Customers are seeking flexibility, so
they can quickly respond to changes in the
business environment. Cloud computing,
where the costs can be variable, is
attractive for this reason, as is hybrid
infrastructure, which offers a mix of on-site
and cloud-based systems. Managed
services, in particular security, are also
becoming increasingly popular, as the
expertise required to protect companies
from cyberattacks continues to grow. All of
this means we are being asked to provide
more guidance and support to customers
– which is why we keep growing our teams
and investing in our technical capabilities.
How we fit into the UK technology sector
We’re one of the UK’s leading value-added resellers (VARs),
providing IT products from a broad range of technology
vendors to a large and diversified base of corporate and
public sector organisations. Our potential market is large.
UK business-to-business customers buy the majority of
their technology products from VARs and other resellers
and distributors. Currently, our share of the UK VAR business
isstill in single digits. And because no one company
dominates the market, we have a lot of room to expand.
For vendors, there are several advantages to selling through
companies like ours, rather than directly to customers.
Wecan promote their products using our skilled salesforce,
market to thousands of customers, advise on latest customer
requirements and work on promotional campaigns with them.
Our partnerships with vendors also benefit our customers
because the discounts and rebates we receive from the
vendors enable us to charge lower prices. This saves money
for ourcustomers and deepens our relationships with them.
Case study
Annual Report and Accounts 2023/24
FINANCIAL STATEMENTSSTRATEGIC REPORT GOVERNANCE REPORT
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