Tech firms see growth opportunities

Scotland’s digital technology sector continued to grow in 2019 with an increase in sales and profit margins, according to the latest annual industry survey by Scotlandis published today.

Despite Covid-19, many firms have identified opportunities for growth over the next nine months.

Around a third of respondents believing business opportunities will rise due to increased or new demands related to Covid-19, particularly in cloud services, digital connectivity, remote working technology and digital health solutions.

In line with many other industries, the most common challenges companies expect to face for the rest of the year are securing new business, cashflow and income management and staff health and wellbeing.

In another indication of business optimism, 71% of respondents expect their employee number to stay the same or to increase their headcount by the end of 2020, with 27% forecasting an increase in headcount.

Around one-third of respondents have already furloughed staff following the Covid-19 outbreak, with 30% planning to do so in the next few weeks.

Meanwhile 29% have already hired new people or are planning that in the near future, with only 8% having already or are planning to make staff redundant.

Jane Morrison-ross, chief executive of Scotlandis, said: “The industry has demonstrated strong growth over the past decade and optimism had risen in 2019 prior to Covid-19.

“Naturally, the pandemic has impacted the outlook for the rest of the year for many, but there is still clear determination across the sector to adapt and respond to several new challenges.”

Jane Morrison-ross, chief executive of Scotlandis.