The impact of currency on UK IT

The change in the value of the pound must surely have an impact on UK IT costs and hence spend! With a loss of nearly 30% in the last six months, prices of software, hardware and services sourced from outside the UK are bound to be under pressure. Some of these will be contracts which have degrees of protection in cost terms, but the providers will be looking to see what they can do to keep their margins up – so beware!

The intriging question will be whether this change drives some sourcing changes. Are we going to see a move to source services and solutions from within the UK? It will certainly bring yet another flavour to the table.

We are certainly seeing some UK companies setting up their own SAP support centres – only last week Premier Foods disclosed the establishment of an CCOE in Manchester. Similarly a large service provider has taken the decision to bring all its SAP activities back in house for its pan European operations again based in North West UK.

It will be interesting to see what happens to price lists in the UK. For sure combining currency effects with the economy changes is not a good mix for sales increasing from non-UK providers.

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