Computacenter sees revenue fall

But surge in services contracts is expected to keep IT firm "on track" in 2009

Computacenter has been hit by a drop in spending from some of its customers

IT services firm Computacenter reported a revenue fall for its first quarter of 2009, but profit was boosted by a six per cent growth stemming from new services deals in the UK.

The company’s UK sales registered a 12 per cent drop in the three months to 31 March 2009; overall group revenues dropped one per cent to £602.4m in that time. The company said its product division has been hit by spending reductions from some of its customers.

Such market developments have strengthened Computacenter’s focus on its services division, which is seen as the most promising area of the business as companies seek to achieve cost and operational efficiency.

“Our focus on developing propositions that reduce our customers' operating costs is enabling our services business to prosper in undoubtedly difficult economic times,” Computacenter said in a statement.

“While the economic climate is having some impact on capital projects and our product business, our growth in services and our cost reduction activity are expected to at least offset this impact,” it said.

“Much remains to be done, particularly the commencement of recent services contract wins, but the business remains on track for the year as a whole.”