Scottish tech sector in growth mode

The number of technology companies in Scotland reporting increased sales grew from 68 per cent to 75 per cent while those improving profits also increased, from 47 per cent to 51 per cent of companies surveyed.

The strong growth the industry has demonstrated over the last 10 years is set to continue in 2019. Some 83 per cent of respondents to the ScotlandIS survey expect to expand sales over the next year, and 81 per cent plan to create new jobs.

However, tech companies have identified some challenges ahead, which have contributed to a slightly less favourable outlook this year, with the number of firms expressing optimism down from 80 per cent last year to 72 per cent.

Key issues facing the sector in 2019 are staff recruitment and retention (52 per cent), the current political situation (41 per cent), and sales and winning new business (30 per cent).

With the digital industries generating, £6bn in GVA, and £3.3bn in annual export earnings, 53 per cent of businesses responding to the survey reported that they are already selling internationally and a further 19 per cent are planning to.

Demand for university graduates remains steady, with 70 per cent of respondents likely to recruit graduates this year.

Polly Purvis, chief executive of ScotlandIS, said: “The digital technologies industry is a major contributor to the Scottish economy, so it’s great to see the vast majority of Scottish tech businesses are expecting a successful year, anticipating growth in sales and new job creation. 2018 was a very strong year, and despite ongoing uncertainty, this year’s survey highlights the strength and resilience of the industry within Scotland. The technology landscape is constantly evolving and provides huge opportunities in areas as diverse as data, cyber, AI, robotics, fintech, healthtech and agritech. As increasing use of technology products and solutions permeates all parts of the economy, underpinning increased productivity and enabling innovation, there has never been a better time to be in tech.”

The Scottish Technology Industry Survey 2019 was carried out between 7 January and 16 February 2019 through an online survey platform and received responses from 160 businesses.

The full survey is available to view here.