Half of Scots tech firms expect stronger sales and profits

Scotland’s technology sector has weathered the pandemic with almost half of firms increasing their sales and profit margins, an industry survey suggests.

Releasing its annual barometer for the country’s tech sector, membership organisation Scotlandis said companies remained optimistic about the year ahead despite the continuing fallout from coronavirus and uncertainty following Brexit.

Some 77 per cent of respondents were said to be “very optimistic” about their prospects for the next 12 months.

Companies reported that the greatest opportunities for their business over the next 18 months were likely to be in data analytics (51 per cent), artificial intelligence, machine learning (47 per cent) and the “internet of things” (27 per cent).

Scotlandis, whose members employ about 60,000 people, also announced the launch of its manifesto for the Scottish Parliament elections. It offers a series of recommendations for stakeholders across scotland to embrace digital transformation and to up skill the nation’ s workforce and citizens.

Karen Meechan, interim chief executive of Scotlandis, said: “Scotland’s digital and tech sector has shown its mettle this year, with resilience across the board.

“This has been a difficult year as companies have had to adapt quickly to the pressures brought by the pandemic and the uncertainty of Brexit. Yet, while it has been a difficult year, growth within the sector is high and we can look ahead optimistically.

“Collaboration has been a real strength within the sector, helping smaller businesses and creating new relationships. As a sector we will continue to grow through collaboration and can look forward to a year of strong growth to come.”

International opportunities are at the forefront of much of the sector’s growth plans, with 60 per cent reporting that this is something they already undertake and much of the remainder looking at plans to do so.

New markets such as Australia and New Zealand are coming to the fore as businesses “adjust to Brexit”, the organisation noted.