It was once known for its shipping history and stunning bridges, and parts of the region are now seeing their identity change around technology, data, and innovation. Newcastle is emerging as a city for digital growth supported by expanding infrastructure, an increasingly skilled workforce, and rising demand for digital solutions.
For organisations in the north east, this shift presents both opportunities and challenges. As a technology consultancy and software development company, we are seeing firsthand how businesses are preparing for the future.
The North East’s digital economy has grown over time. From software houses, financial tech innovators, gaming studios and clean-tech pioneers.
Improved gigabit connectivity, 5G projects, and investment in data infrastructure have strengthened the region’s ability to support companies. Many local organisations, both start-ups and established enterprises, are now seeking modern software, cloud solutions, automation, and data-driven tools to remain competitive.
This demand is creating new opportunities for collaboration between businesses and digital consultancies that can provide the technical expertise required to keep up with evolving market expectations.
A strong digital sector depends on access to skilled people. The North East is taking steps to build that capacity. Universities such as Newcastle University and Northumbria University, and apprenticeship programmes such as Baltic apprenticeships, continue to increase their digital offerings, helping equip individuals with essential skills such as software development, data analytics, Cybersecurity, Cloud Architecture, UX and UI design.
However, the region still faces a familiar challenge: demand for digital talent often outpaces supply. Many organisations require specialised support in implementing new technologies despite the increase in AI tooling available, managing system upgrades, or modernising their legacy platforms. This is where collaboration with external technical specialists becomes increasingly valuable.
By leveraging Shape's internal expertise along with experienced software developers, businesses can enhance their digital transformation efforts, develop new web applications, or modernise outdated websites without being constrained by skills shortages.
Despite all of the positives discussed in the article so far, there are still areas of improvement that could be made.
There are still skill shortages that slow down the total growth in the area. Small businesses can do with more access to new technologies to keep up with the latest trends, as well as more remote areas that often fall behind the cities. There is also always a need for longer-term planning in businesses in relation to their technology needs to allow them to stay relevant in an evolving world.
But by addressing these challenges, software companies like Shape can use their expertise and knowledge of both technology and the local area to help companies make the most of the available technology.
Newcastle and the North East have the potential to keep growing and hopefully become a great choice for technology companies looking to move outside of London. With continued investment, collaboration, and skills development, the area could soon be recognised as a centre of excellence for software innovation, data-driven solutions, and emerging technologies.
For organisations across the region, now is the ideal time to explore new digital opportunities for their businesses. With modern software development, digital consultancy, or tailored technology solutions, businesses have the chance to strengthen their operations and prepare for the future.
The North East’s digital future is looking strong, and by working together, we can help shape it!
