Small businesses 'crucial to UK IT industry'

14:10 2nd November 2009

Big business has been urged to focus its resources on small businesses in the UK's IT industry in order to help the sector remain stable despite the global economic downturn.

IT, telecommunications and electronics association Intellect has warned that big business investment and money designed to boost the IT industry offered by government needs to filter through to the smaller companies which underpin the sector in the UK.

Carrie Hartnell, head of industry strategy at the organisation, explained small IT operations "form a foundation for the technology industry in the UK", but are unable to manage without larger companies' investment.

Ms Hartnell explained that with the "large number" of small companies involved in the UK's IT software and services market, it is important that they are given an environment in which they can prosper.

The software and internet sector of the UK's IT industry has seen the recession as an opportunity, with eight out of the industry's top ten research and development spenders increasing their spending last year, according to recent figures from global management consulting firm Booz & Company.

Written by Paul Jarvis

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