According to technology solutions provider hSo, uncertainty around Brexit has caused a slowdown in the number of government tenders to the technology sector. Data collated from Crown Commercial Service shows that in the run up to the Brexit vote in June, government tenders were steadily being issued, however since the vote and confirmation that the UK electorate wishes to leave the European Union, there has been a slowdown.
In the nine months running up to the UK’s EU Referendum there had been 815 tenders per month on average, but in the subsequent five months, there were only 652 per month, representing a decline of 20%.
Chris Evans, Managing Director of hSo said: “In respect to public sector government tenders issued, there has been a slowdown since the EU Referendum. It’s understandable, given the appointment of a new Prime Minister that the new administration is accustoming itself and looking to make its mark. However, this shouldn’t prevent them from maintaining the momentum that was evident earlier in the year ahead of the Brexit vote.
“Before the vote there was clearly a big push by private and public sector SMEs to reign in their IT and network infrastructure spend, but since then as economic activity has slowed, there’s now even greater reason for businesses to look at more cost efficient network, telephony and hosting solutions.”