The UK IT industry is faring well after the recession, with fewer companies failing than any other time in the past 15 years, according to new research.
Credit reference agency Graydon UK conducted the study, claiming that just 31 IT firms went bust in the second quarter of 2014 – the lowest rate since 1998.
This is a large contrast with the reported figure of 89 reported in Q1 of 2013 and represents the fourth consecutive quarter of declining insolvencies in the country’s tech industry.
Alan Norton, head of intelligence at Graydon UK, believes the numbers point towards a sustained recovery.
“This is industry hitting the bottom of the insolvency curve. It’s a reflection of the overall economy performing more robustly and shows the IT channel is one of the more resilient commercial sectors,” Norton claimed.
IT spending also on the rise
Graydon also claims its survey data shows IT spending in Britain rose 15 per cent over the last five years while other sectors were hit harder by the recession.
For example, construction and manufacturing were down 13 per cent and 9 per cent respectively.
These findings echo other surveys published earlier this year – Virgin Media Business claimed in February that 57 per cent of UK firms are planning to increase IT budgets this year.
However, market research firm Gartner updated its IT spending predictions last month, claiming that pressure on vendors to slash prices meant less was going to spent overall.
Employers in the industry are also facing problems, as further research indicates that there is more demand than supply for IT talent.