IT investment set to increase across the education sector throughout 2023 despite hybrid working and growth management challenges

• 34% of businesses across the education sector project increased investment in IT services this year
• Updated hardware and upgraded servers take priority despite a challenging business environment
• Majority admit to continued concerns around cost of living and hybrid working challenges

Technology investment is set to increase this year for 34% of SMEs in the education sector, despite the challenging economic climate, according to new pan European research. The new insights commissioned by Sharp, the major provider of business technology products and services to enterprises across Europe, show almost 30% of UK businesses within the education industry are embarking on IT security projects or upgrading hardware and updating servers. This is positive as SMEs continue to operate in a climate of rising cyber-attacks and changing working patterns, such as hybrid working and its challenges.

The research surveyed 5,770 professionals within SMEs, including decision makers and those responsible for purchasing IT services across Europe, on their top business and technology challenges and IT investment priorities for the next 12 months.

With rising costs and other business challenges, over 30% of those in the education sector are planning to invest more than last year, with just over 15% expecting to reduce investment. Over 30% plan to invest more than 20% of their annual turnover on IT services this year, with nearly 15% of education decision makers planning to invest a minimum of £10,000 and close to 20% investing over £60,000.

In regard to business challenges specifically, the cost of living crisis in general (45%), and managing a diverse hybrid workforce (31%) were seen as the top challenges that the education sector will face over the next 12 months. Additionally, rising supply costs (28%) and more challenging customers (21%) following major global change over the past three years are also major challenges that UK SMEs in education are looking to overcome.

21% of SMEs in the education industry plan to focus on improving business intelligence and management information. However, 34% will still be focusing on investing in new hardware within the workplace. In addition, 24% of education SMEs are planning to update server systems as traditional IT set ups remain in place, while 14% of those surveyed are not planning any IT improvements at all this year.

IT security is the biggest technology challenge for the education sector with 31% feeling they are likely to experience security challenges over the next 12 months. Despite this, only 15% plan to invest in improving IT security this year.

Mark Williams, Chief Operating Officer at Sharp UK IT Services, comments:

“Many businesses are taking time to review budgets, becoming more conscious as to what challenges need to be addressed and overcome. 2023 is already proving to be challenging for SMEs and organisations to evolve, many are finding innovative ways to improve within the IT space, with priorities focused on efficiency gains, security, and adding value.

This is in combination with huge changes and developments across the education sector over the last three years. Businesses and organisations are continuing to settle into new ways of working. However, this requires revaluation of successful business practices and improved cyber security.

It is beneficial for firms to appreciate the knock-on effects of investment in tech, which provides better management of hybrid working spaces, improved IT security, and efficiency gains throughout the organisation or business.”