Nearly half of ICT companies at risk of default or bankruptcy

Many companies may not survive the next two years, according to new research

Some 44 per cent of technology and telecoms companies will be at risk of default or bankruptcy by 2013, according to research conducted by global business advisory firm AlixPartners and published in the Financial Times.

The consumer electronics industry will be hardest hit, with as many as nine out of 10 companies at risk owing to slow demand and intense competition leading to small profit margins.

High levels of debt used to upgrade technological infrastructure and fund acquisitions has seen three-quarters of telecoms companies fall into the at risk category. The hardware sector is also riddled with companies that are at risk, according to the research.

On the other hand, the technology sector as a whole saw a 10 per cent rise in revenue on the following year.

The research looked at 1,195 companies in total.