Britain’s tech sector has dodged the economic slowdown, seeing a considerable growth in Q4 2014, according to KPMG and Markit’s Tech Monitor UK.
The survey tracked confidence, performance and overall employment outlook of UK technology businesses and found that jobs growth accelerated towards the end of the year, showing the widest performance gap between the tech sector and the rest of the British economy for almost six years.
The sector exceeded benchmarks across the country by substantial margins in the final quarter of last year, with officials citing new business gains, the success of new products and slower cost inflation as factors behind the success.
More than half the tech monitor survey panel (53%) expected to see a rise in business activity over the next 12 months. The survey also revealed that tech job hiring intentions remain upbeat for the year.
Tudor Aw, partner and head of technology sector at KPMG commended the industry for its strong standing.
“This quarter’s report shows that the concerns highlighted in Q3 2014 about the sector entering into storm clouds have been misplaced,” he said. “The previous survey showed that while tech sector business activity had been strong, the rate of expansion had slowed noticeably.
“Remarkably, the final quarter of 2014 marks a period of sustained job creation in the sector that now stretches to five years, something that should be celebrated loudly.”
Aw believes this growth is set to continue, with the sector looking at a promising future ahead.
“In the run up to the General Election, the message from the latest Tech Monitor UK survey is clear; the tech sector remains a star performer of the economic recovery, and the future looks resoundingly bright in terms of industry growth and job creation.”
The report also reveals UK tech start-up numbers are on the rise (40% year on year), following the sharp decline in the aftermath of the financial crisis.
The survey also revealed that the average survival rate for start-ups in Britain has improved, with a rate of 82%, considerably above the UK-wide trend of 76%.
“The survey results echo my personal view that the UK tech start-up scene is vibrant and far outstripping other sectors,” said Aw.
“For those naysayers, it also shows that they have a higher survival rate than the UK average for all start-ups. I sense momentum is building and that it is only a matter of time when we begin to rival the west coast.”