INNOVATION REPORT 2021
forecast for this year indicates a return to the norm, with IT Staff spend expected to rise by the least (8%), while spending on Computer Servies will rise the most to £462 million, up 34%. Hardware is, again, predicted to reduce this year by a further 14%, while Software spend will see the second- smallest jump of just 9% to £257 million. Telecom Services will see the second-largest rise (23%) to £223 million, D FRQWLQXLQJ UHflHFWLRQ RI WUDYHOȇV UHOLDQFH on customer communications compared with overall UK IT expenditure. For third-party technology suppliers, ZKR KDYH ERUQH WKH EUXQW RI WUDYHO fiUPV going into survival mode, our 2021 outlook offers cause for optimism. Our analysis indicates the focus will turn away from direct investment in in-house technology (Software and Hardware) and towards outsourcing, VXSSRUW DQG WKRVH fiUPV WKDW VXSSO\ software and systems.
What our data cannot tell us is what sort of technology or IT suppliers travel fiUPV ZLOO EH ORRNLQJ WR LQYHVW LQ Are traditional suppliers going to see WKH EHQHfiWV RI WKLV WUHQG RU ZLOO WUDYHO fiUPV EH ORRNLQJ WR SDUWQHU ZLWK developers who themselves have embraced digital transformation? It seems in sectors like Hotels and Air
and Water Passenger Transport the move towards a more mobile, contactless and touch-free future is baked into technology strategies. For Travel Agents and Tour Operators, where the USP is the human interface, the focus is likely to be on supporting the person-to-person experience with digital. In these sectors, tech suppliers must be DEOH WR GHOLYHU UHOLDEOH EXW flH[LEOH technologies that enable their clients to react to the changing circumstances that determine consumer demand. So, we are certain to see an ever- greater shift towards cloud-based, plug-and-play, software as a service (SaaS) solution and therefore more PRGXODU 1HWflL[ VW\OH VXEVFULSWLRQ pay-as-you-use models.
UK IT SPEND & EMPLOYMENT: ANNUAL GROWTH BY QUARTER
UK IT spend
UK employment COMPANY SIZE TRENDS
A trend that is set to persist post- pandemic in travel is that IT spend will continue to be dominated by the larger fiUPV EDVHG RQ WKH QXPEHU RI SHRSOH they employ.
7KH 216 GDWD DQDO\VHG IRU WKLV \HDUȇV Innovation Report shows overall percentage reductions in technology budgets in 2020 were spread fairly HYHQO\ DFURVV DOO VL]H EUDFNHWV RI fiUPV The smallest enterprises (1-9 employees), WUDYHOȇV PRVW PRGHVW VSHQGHUV VDZ D GHFOLQH RI
fiUPV ZLWK VWDII DQG DQG
1,000-plus both recorded 39% falls, ZKLOH fiUPV ZLWK
posted 37% and 29% drops respectively. %XW VWLOO WKH ODUJHVW fiUPV FDWHJRU\ which comprises just 45 businesses with more than 1,000 staff, spent 45% of the total on IT for the sector.
,W VKRXOG EH QRWHG fiJXUHV IRU fiUPV with 100-999 staff are skewed by two sectors, Tour Operators and Passenger Water Transport, having too few SOXV fiUPV IRU D VHSDUDWH FDWHJRU\ +RZHYHU WKH ODUJHVW fiUPV
Source: Government data
which has seen IT spend decline by around 15%.
Forecasts for this year indicate the bounce-back will be led by small and PLG VL]HG WUDYHO fiUPV ZLWK LQFUHDVHV RI DQG
SUHGLFWHG IRU fiUPV
in the 50-99, 10-49 and 1-9 categories. However, in terms of sheer spending
SRZHU WKH PRVW VLJQLfiFDQW UHERXQG ZLOO FRPH IURP WKH ELJJHVW fiUPV HYHQ LI LQ percentage terms the recovery does not look as impressive.
Firms with 100-999 staff will see a 15% upturn, equating to a £62 million LQFUHDVH DQG
SOXV fiUPV ZLOO
increase spend by 13% or £67 million. In comparison, the three smaller FDWHJRULHV RI WUDYHO fiUPV FRPELQHG ZLOO increase IT spend by just £45 million. /RRNLQJ DW HDFK RI WKH fiYH FDWHJRULHV RI ,7 VSHQG IRU WKH fiYH FRPSDQ\ VL]H bands, we see a positive outlook for Hotels, which are predicted to recover much of the ground lost in 2020. (OVHZKHUH WKHUHȇV D PRUH PL[HG
SOXV
KDYH UHFRUGHG fiYH FRQVHFXWLYH \HDUV RI declining IT spend, a trend linked to consolidation and large-scale failures like Thomas Cook and Monarch Airlines. 6LPLODUO\ WKH VHFWRUȇV VPDOOHVW fiUPV (1-9 staff) have only recorded one year RI JURZWK LQ WKH ODVW fiYH \HDUV D SHULRG
picture. Travel Agents with 100-999 staff will exceed the sector average increase in 2021 of 11% with a 15% increase. All Tour Operator size bands will see double-digit growth ranging between 11% (1-9 staff) and 21% (100-999 staff) after a fairly consistent reduction in spend of around a third across the sector. The strongest forecast growth for ➢
36 — SEPTEMBER 2021 —
TRAVOLUTION.CO.UK
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
