Why are IT companies confident amid economic uncertainty?

Research from IT industry body Intellect shows that the bosses are UK IT companies are confident about their business performances despite not being particularly confident about the economy as a whole.

Is this a sign that IT is genuinely recognised as a cost that cannot be cut too much during hard times?

A downturn is a time when businesses reflect and in doing so might find better ways to do things. This is often through new technology.

See the article I wrote about Intellect’s research here.

One UK IT firm which is doing quite well is cloud based collaboration supplier Huddle. It is growing fast and picking up plenty of VC cash and recruiting. See my interview with the CEO.

Phil Smith, CEO at Cisco in the UK had this to say about the UK technology sector. “It’s encouraging to see that the future is bright for UK technology firms. Against an uncertain economic landscape, the latest Intellect State of the Sector survey predicts that two thirds of UK IT company executives are very likely to recruit additional staff over the next six months.
“Big companies and investors are no longer shying away from investing in innovation or new talent. This is why the entrepreneurs and tech start-ups of today shouldn’t be afraid to push their ideas right to the top and ensure they live up to their true potential. The relationship they have with technology is unique and their originality and affinity for IT amazes me, so there is no reason as to why the next Twitter or Google can’t come out of the UK.

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