Small businesses in IT may take solace in recent comments from Intellect, which stated that the technology industry will recover from the current slump in the economy.

Charles Ward, the chief operating officer at the UK's technology association, stated that despite all the bad things happening in the market at present, the wide customer base and technological developments in the IT sector could help it bounce back.

He continued: "You've still got growing numbers of people using the internet, growing use of connected devices, growing number[s] of mobile users, continuing, exponential growth in the volume of information - the exchange and having to be stored and interactions between individuals."

Mr Ward explained that at the current time, people are still dealing with the shock of the economy and by the time it comes round to budgets being sorted out and an effective plan getting into action, they will show positive results.

Intellect currently represents over 800 companies in the UK relating to technology, from small businesses in IT to large multi-nationals.

More than half of small businesses (53 per cent) believe that the most important benefit of outsourcing is guaranteed response times for IT support. London-based Connect conducted the research in 2007.