UK firms face GBP £4m losses as outages shift tech focus
Research has found that 50% of UK businesses have had to re-evaluate their technology infrastructure due to network instability and resulting IT outages.
The data, compiled by IDC and sponsored by Expereo, surveyed 650 global businesses with at least USD $500 million in annual revenue, examining trends across Europe, the US and Asia-Pacific, with a specific focus on the UK findings.
According to the study, one in three UK organisations (33%) reported revenue losses of up to GBP £4 million annually linked to network outages or poor performance, while an additional 18% experienced losses in excess of GBP £4 million. The findings highlight the significant business risks associated with network failures and the urgent need for robust connectivity in an increasingly digital environment.
The past year has seen a series of high-profile IT incidents, including cybersecurity breaches and connectivity failures. In response, half of the surveyed UK businesses have swiftly reassessed their technology infrastructure, with 35% of UK technology leaders stating that networking and connectivity now have a higher priority at the executive level.
Investment priorities shift
Networking and connectivity have emerged as the top investment priority for UK businesses over the next year, cited by 40% of respondents, ahead of cybersecurity (39%) and artificial intelligence (35%). This represents a shift from the previous year, when AI was the leading investment area at 42%, followed by cybersecurity (37%) and networking/connectivity (35%).
The report suggests that the urgency around networking and connectivity has displaced AI as the primary focus of technology investment, reflecting businesses' recognition of reliable infrastructure as foundational to other digital initiatives.
Impact on growth and AI
For more than a quarter of UK organisations (27%), inadequate network and connectivity performance is now seen as a direct threat to their growth plans for the year ahead. Almost half (49%) noted that network limitations are impeding the ability to run large-scale data and AI projects, while only 5% believe their current networks are fully capable of supporting AI adoption without obstacles.
"To drive a sustainable competitive advantage, connectivity is no longer an IT concern – it's a strategic business imperative. This research confirms what many technology leaders are already experiencing firsthand: connectivity is now the backbone of business. As organisations race to adopt new AI solutions, the C-suite must treat network performance with the same urgency as cybersecurity and AI itself, because without it, businesses simply cannot succeed," said Ben Elms, CEO of Expereo.
Skills shortage and external partners
The research also highlights ongoing difficulties in sourcing and retaining skilled professionals in both cybersecurity and networking. 44% of organisations struggle to find or keep cybersecurity talent, closely followed by 40% facing similar challenges in networking roles.
To mitigate these skills gaps, 40% of surveyed UK businesses expressed a plan to increase reliance on external partners such as vendors or managed service providers. These measures are intended to ensure stability and resilience as digital transformation places greater demands on IT and network teams.
The full findings, covered in the IDC InfoBrief titled "Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility," reflect a changing landscape in which network performance and talent acquisition are now central to organisational success and digital strategy in the UK business sector.
