European Firms To Spend Close To A Third Of 2015 Tech Budgets On Business Technology (BT)
European firms will spend 28% of total 2015 tech purchases, or €190 billion, on the adoption of business technology (BT) — technologies that help firms win, serve, and retain customers. This compares with 36% in the US and 25% in Asia Pacific, according to Forrester’s midyear forecast. Europe’s BT agenda spending is expected to grow much faster than spending on traditional information technologies (IT), at 11.8% growth and 3.1% growth, respectively.
Overall, European tech spending will grow by 5.4% in 2015 and 4.1% in 2016. Europe’s tech market remains larger than Asia Pacific’s tech market but about two-thirds the size of the Americas’ tech market. Measured in euros, businesses and governments in the Americas will spend €1,105 billion on technology purchases in 2015, compared with €684 billion in Western and Central Europe, and €512 billion in Asia Pacific. The UK at €150.5 billion (£113 billion), Germany at €112 billion, and France at €89 billion combined will represent more than half of the European tech market this year.
Software and tech consulting/systems integration services are the categories that will contribute most to Europe’s tech spending growth, increasing at 7.4% and 7.0% in 2015, respectively. This growth is a result of increased spending on mobile apps, analytics and big data, and customer-oriented applications, along with the related services for helping firms choose, implement, and maximize value from these software products.