IT services organisations operating at the lower end of the market have predicted double digit growth in 2008, despite difficult financial conditions.

According to a report on computerweekly.com, software suppliers' trade association Intellect claims that more than half of firms who took part in an online survey believe they will see better growth than last year.

This is despite reports that the software market could be heading towards a recession, with a Plimsoll study claiming that a third of software companies are showing signs of recessionary behaviour.

Carrie Hartnell, transformational business program manager at Intellect, said: "Any recession will have casualties, but smaller companies will feel the pinch less because they tend to be niche players that understand the market and work closely with customers to help deliver the business in difficult times."

The report showed that 30 per cent of the businesses expecting 15 per cent or greater organic growth had smaller turnovers of between £0 million and £20 million placing them at the bottom end of the IT services market.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)