Slow Tech Adoption Cost the UK Economy £111 Billion, Research Finds

Slow technology adoption across UK businesses stunted economic growth and cost the country £111 billion in turnover, according to new research.

The findings were revealed in a report by Virgin Media O2 Business and Cebr, surveying 1,000 senior IT and finance leaders, and uncovering the impact of businesses failing to increase their digital technology usage in 2021 onwards.

It was found that businesses struggled to progress and implement key technology projects, despite claiming a high level of digital readiness. Yet 75 per cent of businesses haven’t significantly increased their digital usage since 2021.

Those actively investing in digital solutions saw 12 per cent growth in turnover, compared to 5 per cent among those that weren’t actively investing. These leaders also, on average, doubled the productivity growth of their counterparts.

Digital leaders also saw an 8 per cent rise in Gross Added Value, while those not actively investing saw no growth at all.

Libero Raspa, Managing Director of adesso UK commented: "Fostering a strong digital culture is critical to unlocking the transformative potential of technology. The link between digital adoption and measurable business outcomes—such as increased turnover, productivity, and job creation—demonstrates how embracing innovation can drive both economic and social progress. By integrating digital tools into everyday practices and prioritising skills development, organisations can position themselves for sustainable growth and resilience. Bridging the gap between investment and implementation will be key to achieving the £111 billion opportunity identified in this research, ensuring the UK economy thrives in an increasingly digital world." 

Sachin Agrawal, Managing Director of Zoho UK commented: “Innovation is the cornerstone of enterprise success and for digital transformation projects to demonstrate ROI, they should have buy-in from stakeholders across the business, from implementation teams to end-users in order to create a strong digital culture.”

“The findings from Virgin Media show that organisations embracing strong digital cultures consistently outperform their competitors, yet we see frequently there is still a long way to go for UK businesses to be digitally mature enough to realise strong ROI from introducing new technology, let alone to have the right culture to drive adoption. There remains a significant digital gap across the business landscape but UK companies could surge once maturity and culture catches up and tech adoption rises.”

“Enterprises that prioritise agility and continuous learning are better equipped to navigate challenges and take advantage of opportunities. Businesses should think more clearly about creating long-term partnerships with the right vendors for their digital transformation journeys. Taking a strategic approach to aligning tools, consolidating platforms and closely mapping to business goals is an important step to avoid falling behind and to improve the digital health of UK businesses.” 

Over four in five (81 per cent) organisations with a strong digital culture believe their workforce is well-prepared for the future, compared to 43 per cent among those with a weaker digital culture.

The report also forecasted that increased tech adoption between 2021 and 2023 could have created 676,000 new jobs, including 313,000 new positions in small and medium-sized companies.