Menzies gathered views from over 500 senior figures for its Agile Advantage report, and 143 of them work in tech. Many say work feels heavier and slower than it used to. They describe long delays in areas that once moved at a quicker pace and say this is feeding into day to day strain.
The report says 85% of tech companies can’t keep up with fast changes in costs, policy swings and new tools. 20% say they even missed an opening this past year because they could not act in time.
Another group, 23%, spend most of their week dealing with sudden fires inside the business. They say this drains time from growth plans and from new ideas that need consistent attention. Managers describe teams that feel stretched, juggling small problems that never seem to go away.
How Much Are Money Pressures Slowing Them Down?
The survey shows money issues as the biggest contributions to the slowdown. Menzies says 33% of tech firms struggle with cash flow and tight budgets, and 32% say their systems and data tools are too weak to support fast decisions. Leaders say this leaves them stuck waiting for numbers, forecasts or approvals that once came quicker.
Funding routes also look less as the report shows that 34% say private equity links fell away during the past two years. Government support feels harder to reach too. Menzies lists 31% losing grant access, 29% losing emergency schemes, 24% seeing less venture capital interest and 20% facing limits on R and D tax credit use.
Bigger economic conditions add extra pressure. 30% say stagnation sits at the top of their worries during the next 18 months, and 18% say high energy costs add more strain to daily decisions. Leaders say these pressures slow conversations on long term ideas and leave teams nervous about making the wrong call.
Cutbacks are already visible. Menzies reports that 27% went down on international work. 20% went down on product lines and partnership activity. 19% went down on AI work, 18% went down on cybersecurity upgrades, and 23% shrank their office footprint.
How Are Rules And Hiring Problems Adding Pressure?
Regulation appears often in what firms told Menzies. The report says 34% want rules from regulators set out in a way that feels steadier and easier to act on. Leaders say too much guessing slows their response during tense moments.
Another 22% see rising regulatory demands as the biggest threat during the next year and a half. Hiring adds its own strain, with 21% saying the talent pool for tech skills feels too small. They say this slows new work and leaves teams juggling tasks they were not hired for.
Firms also mention that rule changes and slow hiring leave them stuck in long admin cycles. This stretches early product timelines and pulls teams into paperwork that eats into the week. Leaders say this creates long queues of tasks that leave bigger ideas waiting.
What Internal Pressures Are Teams Dealing With?
The report shows that people pressures appear in many areas. Senior hiring went down for 24% of firms. Another 24% paused general recruitment, and 23% paused training that would normally help staff grow into new roles.
Decision making comes up again and again. Menzies says 48% want faster decisions inside their companies. Another group, 42%, want leadership teams to pull in the same direction so meetings stop circling round the same issues. Staff say slow decisions drain energy and lead to long queues of work waiting for sign off.
Communication gaps also create friction. Menzies reports that 28% say weak communication slows their ability to act. Another 26% say short term pressure pulls attention away from the long term. Many describe days shaped around emergencies rather than careful building.
What Do Leaders Say About The General Mood?
Simon Massey, Menzies’ Managing Partner said many tech companies have fallen into a waiting mood. He said they keep waiting for the Budget, the economy or politics to settle, and this waiting leads them to miss openings for growth.
Massey said: “Right now, too many UK businesses are stuck in ‘wait and see’ mode – waiting for the Budget, waiting for the economy, waiting for international politics to settle. But as our research shows, the result is that too many are missing the opportunity to innovate and grow.”
“Massey continued, “Businesses can’t control what’s going to be in Rachel Reeves’ red box, but they can control how resilient, agile and prepared they are for whatever may be around the corner. There’s no secret to business agility, but it’s near impossible if a business doesn’t have a clear destination and a direction of travel understood by every level in the organisation.”
Together, the numbers from the Menzies survey paint a sector slowed down by money strain, slow decisions, hiring shortages and complex rules. Leaders say these pressures make it harder to move at pace and also explain why spending on product work, international activity and digital programmes went down for many firms.
Tech managers say they want to move faster again once conditions feel steadier, but for now they feel pulled down in all directions as problem after problem lands on their teams.
