Credit crunch not effecting businesses spending on IT

Businesses are seemingly not being affected as badly as first thought by the credit crunch as they continue to spend on IT.

The number of UK technology suppliers issuing warnings on their profits as halved in the second three months compared to the previous three months. However, other companies such as housing and finance are struggling with the challenges faced by the credit crunch.

UK suppliers of IT software, hardware and equipment issued 12 profit warnings in the second three months of the year compared to 20 in the first three months.

IT suppliers seem to have been helped by the fact that a lot of large firms are half way through long term IT projects which could take a number of years to complete. Similarly IT investments are seen as business critical by small companies. It is clear to see that the credit crunch is not affecting IT organisations as badly as other industries.