PESTEL analysis of the IT Industry UK
Political factors:
The United Kingdom is one of the most powerful Countries in the world. The Prime Minister is the head of the government. All the decisions are made by the Prime Minister of the country. The UK government has been a global leader in Technology growth and innovation. The UK government introduced various policies to attract foreign investors to grow the IT industry. The government of the UK is very proactive in ensuring the UK remains a hub in Information & technology. The UK Government is more focused on cybersecurity and data protection. The government has invested much in cybersecurity as the world is getting digital to ensure safety (Litvinenko, 2020).
Economical factors:
The UK economy is strong, but after the COVID pandemic and inflation, the economy of the UK is at risk. Even after the pandemic, the IT industry is still in demand as people are moving toward the digital era, which helps in remote working technologies, including e-commerce, and cloud service. The UK government is committed to improving digital infrastructure. The government has spent a lot on the technology sector, and that investment will help a lot towards the growth of IT and will make sure that the UK will remain a technology hub (Adedoyin and Zakari, 2020).
Sociological factors:
The sociological factor includes digital trends and behavior and much more. These are crucial as they may influence the demand for IT services, products, and availability in the industry. People are increasingly reliant on digital services. Everyone is adopting online services after the pandemic, which has increased the demand for IT across various sectors from e-commerce to digital services (Almaiah et al., 2022).
Technological factors:
The UK is among the top leaders in terms of the IT industry which is very helpful for the UK. It attracts new talents and investors. The UK is adopting new technologies rapidly such as artificial intelligence, data science, and cloud computing which is creating new opportunities for IT companies. The UK government also supports the industry and gives funds for more Research and development (R&D). Sometimes it can be challenging to keep updated according to market trends. IT companies must be adapting new technologies rapidly (Adamides and Karacapilidis, 2020).
Environmental factors:
IT companies are exploring ways to become more environment friendly and trying different things such as renewable energy sources which are wind and solar power and trying to reduce electronic waste. IT industries are more focused on sustainability on public demand and government pressure. Companies are trying to design and make products that are easier to recycle. The UK government is trying to achieve net zero carbon emissions by 2050 (Javaid et al., 2022).
Legal factors:
The UK has a very long and proud history of democracy. It is the world leader in human rights and civil liberties. Legal factors in the UK IT industry refer to the laws on how companies will operate in the country and every company has to follow the rules. The main concern is to keep data safe and protected. The General Data Protection Regulation (GDPR), which was implemented in the UK set some strict rules on how companies collect and use the data to keep the data protected and processed in a manner that protects the privacy of every individual (Jodha and Bera, 2023).
Reference
Adamides and Karacapilidis, (2020). ‘Information technology for supporting the development and maintenance of open innovation capabilities.’, Journal of Innovation & Knowledge, 5(1), pp.29-38.
Almaiah et al., (2022). ‘Factors affecting the adoption of digital information technologies in higher education: an empirical study.’, Electronics, 11(21), p.3572.
Diamond and Laffin, (2022). ‘The United Kingdom and the pandemic: problems of central control and coordination. Local Government Studies.’, 48(2), pp.211-231.
Javaid et al., (2022). ‘Understanding the adoption of Industry 4.0 technologies in improving environmental sustainability.’, Sustainable Operations and Computers, 3, pp.203-217
Jodha and Bera,(2023). ‘Copyright issues in the era of Ai-A critical analysis.’, Res Militaris, 13(3), pp.1737-1748.
Litvinenko., (2020). ‘Digital economy as a factor in the technological development of the mineral sector.’, Natural Resources Research, 29(3), pp.1521-1541.
