Despite the apparent optimism and talk of certain sectorsbeing immune from the pressures of the downturn the ICT market is being hitbadly by the credit crunch.
The latest findings from Siemens Financial Services makegloomy reading for those that had though the IT and telecoms sectors werecoping with the current problems.
Across the board, over a range of all major industrysectors, 25.3% of British companies have seen their cost of borrowing increasesince the credit crunch started last year,
Almost a third of those companies operating in the ICTmarket place, 27.8%, have already been told by their banks that interest rateincreases are on the way. Already 18.5% of IT and telecoms companies have seenthe banks adjust credit limits downwards, which is worse than the UK average of8.7%.
Peter Austin, general manager at Siemens Financial Servicessaid that the survey showed the problems in the wider economy were filteringthrough to the IT sector.
“Clearly they are being affected by the double blow oftightening credit conditions and customers’ delaying investments due to theirown cash concerns,” he said.
Mark Ancell, head at intelligence at Graydon, said that thecost of borrowing had almost doubled in the past couple of years and it was aglobal problem and those that had enough money in the bank to avoid borrowingwere best not to.