Recession 'could boost technology innovation'

The future of IT services could actually be boosted by the current global economic slowdown, it has been claimed.

According to a study by accountants KPMG, the UK recession and the general world slowdown could help to increase innovation in the IT sector, with operations such as web hosting set to benefit.

Tudor Aw, technology partner at KPMG, told delegates at the Intellect Annual Regent Conference 2009: "You'll get much clearer, far more focused companies that exist and can drive through technology that's useful, productive and relatively profitable for everyone concerned."

He added that the industry was set to see "enormous rationalisation", which could help both businesses and consumers getting "a better bang for our buck".

Recent figures released by Forester Research warned that the IT industry would slow over the coming 12 months, with purchases from both businesses and governments dropping by three per cent.

However, Mr Aw's predictions suggest this contraction could help to improve the market in the long run.

Written by Dipika Patel