Small businesses in IT, along with other companies across the UK, are at their strongest financial point since July 2008, according to recent research by Experian.

The Insolvency Index compiled by the global information services company found that while the average business insolvency rate increased slightly in October, the UK business community is much improved.

It was also discovered that the smallest businesses, or those with one to two employees, remained the most resilient while these so-called 'micro' firms also showed the highest improvement in financial strength during October.

Rolf Hickman, managing director of Experian subsidiary pH, said: "Throughout 2008, the average financial strength score had been seeing a downward trend, but 2009 has seen a reversal.

"The financial solidity of UK businesses has been improving over the year."

Recently, Experian announced a partnership with India, creating a credit bureau with seven local banks including Axis, Federal and the Union Bank of India.

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.