28 May 2008
Information technology and communications (ICT) services firms are continuing to enjoy growth in 2008 and remain profitable, despite fears that the service sector would be hit hard by the credit crunch.
That is according to the Confederation of British Industry (CBI), which surveyed more than 140 professional service companies to find that profitability fell for consumer services, but remained level for business services firms.
Ian McCafferty, chief economic advisor at the CBI, said: "The telecomms & IT sector has seen a run of strong profitability growth," while the report elaborated that better performance of ICT firms was due to aggressive cuts in selling points and increases in volumes of business.
Recently, a report by IDC suggested that IT services vendors are increasingly catering to medium sized enterprises, where demand for services is growing at twice the rate of that seen among larger organisations.
Forecasts by the analyst suggested that IT vendors traditionally focused on the largest firms will begin to improve the value of their midmarket services, aiming at companies with up to 1,000 employees.<br/>
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