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Recovery in tech world continues but fragility remains

Simon Quicke

The recovery remains fragile and the expected cuts in public sector bugets could put a strain on the tech sector if they are not made sensibly.

The conclusions of Intellect's State of the Technology Sector 2010 report show that although there is widespread optimism there is also a great deal of caution.

"Although there have been some dark days, the industry has proven itself to be resilient and innovative in the face of uncertainty. Unlike previous recessions, customers have turned to their technology partners for the right strategy and productivity improvements," stated the report.

Some of the highlights concerned the public sector, which Intellect acknowledges will be under threat and software, which was seen as the brightest star in the current climate.

"The challenge...will be to make politicians and officials understand that whilst implementing change programmes and technology have an upfront cost - they can deliver significant long term savings and efficiencies," wrote Sureyya Cansoy, associate director of Intellect, in the report.

"The software sector seems to have weathered the storm of recession in the best shape and, across the different markets, some of the lading UK software companies have shown strong results throughout 2009 and into 2010," concluded the report.

But Intellect warned that the market continued to face challenges: "The big question for this year is can the momentum be maintained and will technology industry continue to grow as the economy does."

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