The "bring your own device" (BYOD) market will be worth £2 billion to UK software and IT services suppliers over the next five years, with companies having to modify their existing IT service agreements as a result, said analyst TechMarketView.
In its "BYOT (bring your own technology): opportunities and threats from disruption" report, the analyst house said that BYOD-related spending will grow from £176 million in 2012 to £675m by 2016, amounting to £2 billion over five years.
This will be driven by the rapid increase in adoption by employers and staff, with five million employees adopting BYOD at the end of 2011, rising to around 9.5 million by 2016 - an increase of 80 percent.
The accelerated uptake of BYOD "will force companies to re-think their IT and HR policies", said TechMarketView.
Although organisations are likely to divert budget from other areas of IT spend to pay for BYOD projects, rather than adding new budget specifically for the trend in the long-run, said the analyst, the significant growth in BYOD will entice many suppliers to position themselves to take advantage of the market opportunity.
TechMarketView analyst Phil Codling said: “The BYOT trend is a double-edged sword, whilst rapid and sustained adoption will lead to a £2 billion opportunity for the UK IT market, it will be a huge disruptor to supplier partnerships and business models.”
Codling said BYOD will create opportunities for consulting, integration and software implementation, as companies try to navigate security and management issues, whilst "significant downward pressure" will be applied to support and hardware suppliers where personal devices replace centrally-owned kit.
As employers and employees embrace BYOD, the onus for support will shift towards the employee and away from IT departments and support services suppliers, said the analyst.
“Regardless of the potential opportunity on offer for software and IT service suppliers to provide advice and auditing as businesses transition to BYOT, the threat to desktop and mobile hardware suppliers is undeniable and suppliers need to find new business models and revenue drivers to counter this,” said Codling.