Growth predicted by software and IT services sector

A survey conducted by Intellect, the UK technology trade body has found that 53% of SMEs in the IT sector forecast double-digit growth for 2008 compared to 49% that predicted double-digit growth last year.

The survey asks software and IT services companies operating about their current and future performance. 83% of respondents were SMEs and it was these who were most confident about their prospects for the next 12 months. Businesses expecting 15% or greater organic growth were largely in the smaller end of a £0-£20m turnover range, and there were no companies larger than this expecting such high growth rates. Some of the sectors most likely to generate this growth, according to the respondents are Services, Telecoms, Public Sector and Banking.

The survey found that outsourcing and off shoring has increased, but Asia is becoming less popular as a destination. The percentage of respondents outsourcing to Asia dropped to 44% from 55% in 2007. In contrast, both Western and Eastern Europe have seen an increase in R&D outsourcing