The technology industry is sitting pretty while other sectors struggle to handle price rises and reduced spending, according to research by market watcher KPMG.
The research, which looked at the number of businesses making negative announcements, such as redundancies, found that the technology sector has been recording steady results.
In the second quarter of this year there were 46 negative announcements, an eight per cent fall from the previous quarter.
Philip Davidson, head of KPMG restructuring, said there had been a “drive for innovation and new ideas in the technology sector”, with the telecoms and communications industries “at the forefront” of the growth.
Bernie Dodwell, alliances manager at networking distributor Westcon, said that the market had become stronger in some areas and that his firm had seen a 20 to 25 per cent increase in its voice business over the last two years.
“Voice and security are very competitive markets. The clever resellers are the ones that can bring convergence to the market. Those who can diversify and offer real value and not just ship tin will succeed,” he said.
Chris Gabriel, marketing director at Prime Business Solutions, claimed the VAR has taken such steps to stay ahead in the market.
“You have to differentiate yourself and we have moved from being a tin-based firm to being a services-based firm. When you are offering applications you also need to have knowledge on other matters, such as security and regulations,” he added.
Andrew Saunders, divisional managing director at Crane Distribution played down the notion that new technology sales have improved and claimed that some end-users show some reservation about unjustified investments.
“We are finding that trading is improving, but it is still not easy. We see customers investing in new technology, but there has to be a very valid business reason for any consumer uptake,” he added.
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