Recession expected to get worse, say IT suppliers

Green shoots of recovery are "nowhere to be seen" says research

Big suppliers are better placed in the recession

IT and telecoms vendors worldwide are expecting the recession to get far worse for them, according to research.

A survey of global IT and telecom executives by the Economist Intelligence Unit (EIU) suggests the downturn is worsening.

"The green shoots of economic recovery are virtually nowhere to be seen," says the report.

The Sub-zero Confidence study also shows hardware firms faring worse than software and telecoms companies. The survey suggests that only one in five technology companies are expecting a rise in demand from current levels over the next six months, while half expect the situation to get worse.

Two-thirds of the 367 executives polled say the financial health of tech companies will decline, with almost four-fifths saying that research and development activity will stay the same or get worse.

But EIU director of industry briefing and forecasts Carla Rapoport said there are some positives to come out of the research.

"Debt among the big players is relatively low, many emerging markets are still growing and there are few of the overcapacity problems we saw following the dot com crash,." she said.

"[But] the industry clearly sees little chance of an early recovery".