IT sector to be hit by credit crunch in 2009

Information technology companies face the possibility of being hit by the credit crunch next year, a leading industry analyst has claimed.

In an interview with Computer Weekly, Richard Holway, a former director at technology research company Ovum, said the IT sector will face a recession of two per cent in 2009.

He suggested that the prospects for different types of firms within the sector will vary.

"There are going to be some areas which are going to grow dramatically, some areas, unfortunately, that I believe are going to see fairly major declines," he said.

"But I think that the average, for the first time, is going to see a very minor, but still, a negative for 2009."

However, there was silver lining, as Mr Holway added that IT companies that can deliver savings for client businesses by supplying outsourcing contracts will prosper.

"Any business-process outsourcer that can say to a company, 'We can save you money, and not only that, but we can save you money this financial year,' those companies are doing very well."

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