TechTarget

IT sector takes responsibility for tackling recession

UK businesses in the IT sector are attempting to reduce the impact of recession through pay freezes and reduced payouts to

UK businesses in the IT sector are attempting to reduce the impact of recession through pay freezes and reduced payouts to shareholders, according to the Chartered Management Institute (CMI).

But almost a third of firms in the IT sector are considering merging with competitors to help them ride out the economic storm.

A survey of technology businesses in the UK revealed that some were taking responsibility and reducing payments to investors.

"Employers accept some responsibility for tackling the recession, with many respondents focusing on reducing payouts so that funds are available to ease cashflow," said the CMI.

According to the survey, 31% of firms in the IT sector are considering reducing dividends for stakeholders. A total of 38% are also looking at holding back pay rises for 12 months.

CMI revealed that 34% of IT businesses have diversified into new marketsto becomeless reliant on certain markets.

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