According to new research from KPMG, the British tech sector has outperformed the rest of the private sector in terms of hiring and long-term outlook.
This is no new trend. KPMG notes that the tech sector has consistently outperformed the rest of the private sector over the last decade. There’s plenty of confidence, too. Growth expectations at tech companies are well above the private sector average.
KPMGalso introduced a new index to track job creation and growth and UK companies. The Tech Sector Purchasing Managers’ Intex keeps track of hiring and purchases – and it indicates that tech sector growth and output have been strong since the end of the recession. However, bigger outfits seem to be doing better than small tech firms.
“Our new report Tech Monitor UK, the first of an ongoing series, reveals a number of key findings: importantly, it shows that the UK tech sector has generated solid rates of job creation over the last four years and that it has consistently outpaced other UK private sectors in creating jobs since the global financial crisis in 2008/09,” Tudor Aw, Head of Technology at KPMG said. “In terms of business outlook and confidence, we can take heart that tech companies in the UK are bullish about the next 12 months. Optimism is at one of the highest levels since data was first recorded in late 2009 and also continues the trend that tech companies are consistently more upbeat regarding hiring intentions than other UK sectors.”
The report also provides an interesting geographical snapshot of Britain’s thriving tech economy, which reveals that most companies are located in the South East of England and London. Nearly all are located near the M4, M3 or M25 and they have easy access to Heathrow and Gatwick.
“The findings of our report clearly highlight the link between investing in transport infrastructure and attracting businesses and therefore driving growth in the UK economy,” Aw commented.
