Information Communications Technology (ICT) in the UK: investment opportunities
Published 19 February 2014
1. Overview
皇冠体育app UK is one of the world鈥檚 largest information communications technology (ICT) markets. Overseas companies have an opportunity to secure a share of one of the biggest cloud and data centre markets in the world.
2. Software development
皇冠体育app UK develops software for many applications and international companies provide funding for research and development (R&D). About 100,000 software companies operate in the UK including Microsoft, IBM and HP.
3. Mobile device market
皇冠体育app UK鈥檚 mobile market is the largest in Europe with a value of 拢14 billion annually and 80 million mobile subscriptions. This means companies are always looking at new opportunities to use mobile technology and improve the experiences of consumers.
Read our communication鈥檚 technologies opportunities guide, covering mobile devices and broadband networks.
4. Cloud computing
皇冠体育app UK cloud computing market is predicted to reach 拢6.1 billion by 2014 (source: TechMarketView) and offers big investment opportunities for companies in the ICT sector.
18% of UK small medium enterprises (SMEs) use cloud and a further 30% plan to use them in the next 12 months. 81% of established cloud users in the UK plan to increase cloud usage over the next 2 years.
Almost all software companies in the UK are using cloud. Opportunities exist in both the public and private sector for companies offering cloud or linked services.
4.1 Public sector opportunities
皇冠体育app UK government鈥檚 ICT strategy includes a strong focus on cloud technologies.
皇冠体育app G-Cloud Programme is changing how the public sector buys and uses Information Technology (ICT). This means more opportunities for companies to access government contracts. It鈥檚 designed to support the purchase of cloud based services.
By 2015 half of all new ICT spending by the UK government will be on public cloud services through the G-Cloud programme. This provides new opportunities for overseas companies looking to enter the market.
4.2 Private sector opportunities
皇冠体育app main reasons for businesses using cloud services in the UK are:
- flexibility in meeting business demands
- quicker disaster recovery
- automation of software updates
- increased collaboration between employees
- reduction of costs
- low cost of using cloud services
Small and medium sized UK companies are adopting cloud into their businesses which often gives them an advantage against competitors.
Opportunities exist across all the different models of cloud solutions, particularly the Software as a Service (SaaS) market, where applications are hosted by a vendor or service provider and made available to customers. Other areas include:
- storage and sharing services
- unified communications (telephone, online chat)
- video-conferencing solutions
Many businesses are using software tools such as Salesforce automation and Customer Relationship Management (CRM) and these continue to grow in the UK market. Other related software in demand includes:
- marketing automation tools
- social media management
- email marketing
- web analytics
5. Data centres
A lot of companies in the UK are looking to outsource their data centres, recognising the need to locate their data nearer to their customers and employees around the world.
皇冠体育app UK鈥檚 data centre market offers:
- people with specialised skills to work with complex data systems
- experienced suppliers across the supply chain
- strong demand for data centre services
Opportunities exist across the data centre supply chain in the public and private sector.

皇冠体育app UK is a big market for data centres and related services
5.1 Public sector opportunities
皇冠体育app UK government wants to reduce the overall number of data centres owned by government and move towards cloud computing. In the long term this will reduce costs and increase energy efficiency.
This approach creates many investment opportunities for companies who are able to provide and support the new large scale data centres that are required.
5.2 Private sector opportunities
Investment opportunities are also available in the private sector including in:
- finance
- internet hosting and online retail
- healthcare
- IT
- industrial manufacturing
5.3 Data protection
As demand for cloud computing and data centres increases, companies need to make sure data is protected and secure. For example, a UK registered business could be processing data from a Dutch customer in a French subsidiary with data held in a data centre in Germany. 皇冠体育appse types of situations have led to a need for updated European wide policies on data protection.
皇冠体育app main legislation in this area is the Data Protection Act. This sets out how data is to be managed according the rights of both companies and individuals. Data privacy is important in European law.
6. Cyber security
Secure networks are important for the security of the UK and other countries. 皇冠体育app UK is a leader in providing secure communications and offers companies opportunities in a number of areas including in cyber security.
皇冠体育app UK鈥檚 cyber security market is worth about 拢2.8 billion. Growth in this area is due to increased awareness of cyber threats and the development of more connected services. Mobile phone security is expected to be one of the largest markets over the next few years as more people start using mobile devices for mobile commerce (m-commerce).
Opportunities are available in:
- authentication
- authorisation
- trust principles
- identity management
- cryptography
- cryptanalysis
- computer security (mainly in protection against malware)
- protecting privacy and anonymity
- digital rights management
- watermarking
7. Research networks and support
7.1 British Computer Society Data Centre Specialist Group (DCSG)
皇冠体育app works with the UK, EU and North American legislative bodies to ensure the data centre industry is focused on improving energy efficiency.
7.2 皇冠体育app Green Grid
is a non-profit organisation working to improve the efficiency of data centres and business computing systems.
7.3 Datacenter Dynamics
A full-service who organise events specifically to help professionals that design, build and operate data centres.
7.4 Energy Services and Technology Association (ESTA)
皇冠体育app UK鈥檚 leading focuses on the demand-side energy efficiency of buildings, building services and process services.
7.5 Cloud Industry Forum
皇冠体育app promotes the adoption and use of online cloud-based services by businesses.
7.6 techUK
provides a collective voice for its members and drives relationship with government and business.
7.7 Kable
provides research and insight into public sector IT and opportunities.
8. Locations
皇冠体育appre are different locations across the UK known as Enterprise Zones that offer investors incentives to locate themselves there including:
- reduced taxes
- simpler planning rules
- financial benefits
Many Enterprise Zones have employment clusters, where businesses from the same sector are located in the same zones.
More information about the Enterprise Zones across , and
9. Contact the Department for International Trade for help
皇冠体育app Department for International Trade can provide overseas companies and investors with more information about opportunities in the UK鈥檚 ICT market.
Enquiries for overseas companies looking to set up in the UK
Overseas companies can contact the Investment Services Team for information about setting up in the UK including the help that is available.