09 Dec 2008

UK software demand 'holds up'

The economic downturn has not halted rising demand for software solutions among UK businesses, an expert has suggested.

Cynthia Lers, director for investor relations at Sage, commented that software sales have held up well during the current financial crisis, noting that businesses are more reliant on IT solutions than they were during the recession in the early 1990s.

Businesses are using software solutions for payroll, accounting, infantry and data management needs, Ms Lers noted.

"Now businesses have become reliant on software and using it," she said.

"They are more likely to turn to software to get the head count and run businesses with more IT," Ms Lers added.

Increased use of software could lead to more firms considering hosted solutions for their IT needs, such as through cloud computing and virtualisation.

According to a PMP Research survey in April, reasons for software take-up among companies included the constant need to update business processes, the requirement to improve management information systems, demand for customer-focussed software and the necessity for cost reductions.