UK could receive £100bn boost if firms embrace cloud computing

The UK economy could gain a £100 billion boost to its productivity if firms would consider making greater use of everyday tech such as cloud computing, according to new research from the Confederation of British Industry (CBI).

According to the study, CBI experts have concluded that popular technology such as cloud computing tech and online procurement could be worth as much as £100 billion to the British economy. Specifically, CBI suggested that these well-established systems could help to boost incomes in the worst performing regions and help to reduce inequality across the Britain.

The study did find that Britain is one of Europe's leading technology firms, surpassing France and Germany in terms of productivity. However, they only employ five per cent of the workforce. The study also found that the UK has significantly less productive companies than its European counterparts, with almost 70 per cent of workers employed by companies with productivity below average.

"Too many firms are missing out on what’s right under their noses," said Carolyn Fairbairn, the CBI’s director-general. "Failing to adopt the nuts-and-bolts technologies of today is leaving a yawning gap in productivity and pay ­between businesses."

Ms Fairbairn argues that cloud and mobile technologies are already being used by the country's most productive firms, while those struggling to get the most from their workers are failing to keep up with technology advancements.

In fact, she suggests that better management and leadership accounts for 10 to 15 per cent of the productivity gap between UK and US firms. As a result, Ms Fairbairn is calling on the government to redirect money from the European Regional-Development Fund to support businesses and help them keep up with international rivals following Brexit.

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