Scotland tech sector’s buoyant outlook

More than 80% of technology companies in Scotland expect to increase sales and employees over the next 12 months.

The finding is contained in the Scottish Technology Industry Survey published by ScotlandIS.

The outlook follows a strong 2014 for the sector, with 70% of businesses reporting an increase in sales from 2013 and only 17% reporting a decrease.

Significantly, 35% of businesses reported an increase in turnover of 20% or more; the largest percentage since the survey began.

In addition to an increase in sales, businesses improved profit margins; 36% reported increases and a further 36% reporting stable margins. An historic low – 22% – reported reduced margins.

Looking ahead, 86% of business expect sales to increase and 83% believe they will employ more people.

The survey, sponsored by technology recruiment firm Nine Tenty, reinforces the sector’s place in the Scottish economy.

“The technology industry is one of the major contributors to the Scottish economy with a contribution in excess of $6bn or £4bn or 3% of Scotland’s GVA,” said Polly Purvis, executive director of ScotlandIS.

“80,000 people are employed in the technology industry, which equates to one in every twenty fifth person employed in Scotland.”