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by Sofia Villegas
21 March 2024
Tech sector expecting economic boost, survey reveals

A bright year ahead expected for the Scottish tech sector | Alamy

Tech sector expecting economic boost, survey reveals

The vast majority of organisations operating in the Scottish tech sector – 90 per cent – expect sales to grow in 2024, according to the latest ScotlandIS technology Industry Survey.

None of the respondents expected sales to decrease, and almost three in 10 expected to see sales grow by more than 20 per cent over the course of the year despite the ongoing cost-of-living crisis.

The survey also revealed that 78 per cent of respondents were optimistic for 2024, a six percentage point increase compared to last year.

The sector also expects to increase its headcount, with around four in 10 tech businesses expecting to expand their workforce in the next 12 months and only two per cent planning to cut jobs.

Amid a skills shortage, over 60 per cent also said they were planning to hire recent graduates.

According to a report by the charity Inspiring Scotland, as of 2020 almost two out of every 10 people in the country had no digital skills at all.

Despite the promising figures, ScotlandIS chief executive Karen Meechan warned not to take these "for granted" and called for further support for the "growth to continue”.

She said: “While we’re clearly cognisant of broader economic challenges, as well as the tough choices facing government, many of our members have faced extremely difficult times in recent years.

“Covid, Brexit and a sustained period of economic stagnation have all contributed to a challenging landscape. The chronic shortage of skilled tech workers, in particular, has proved problematic for many.

“What’s more, recent changes to the income tax bands north of the border have certainly not helped our competitiveness when it comes to attracting top talent.

“I only hope the positive responses to this year’s survey will reiterate the potential that exists within Scottish tech and remind policy makers how much the industry can contribute to Scotland’s economic prosperity.”

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