Cambridge Online survey reveals four in ten technology businesses grew sales strongly through the recession.

Technology companies completing the survey ranged from IT product manufacturers, telecoms infrastructure developers, software and specialist electronics distributors. 42% of technology companies grew their sales by 10% or more during their financial year 2009/10, compared to 29% average for all businesses. 28% of technology businesses saw sales fall, much less than the 44% average for the region. Understandably 71% of technology businesses focused on improving systems and processes to achieve efficiencies to overcome the effects of the recession, thus minimising job cuts – only one in five tech firms (21%) cut staff by more than 10%, compared to 29% for the region.

None of the technology businesses surveyed were looking to make new job cuts or introduce pay freezes, whereas 9% of all businesses across the region were planning job cuts. Improving systems and processes and engaging more deeply with customers were the two top priorities for them. If they had to face the downturn again 14% of technology businesses would have concentrated on exporting more, compared to just 4% across all Eastern region businesses surveyed.

Nearly three-quarters (71%) of technology companies believe the East of England is ideal for accessing skilled employees needed to grow their businesses; 64% believe that the new local enterprise partnerships set to replace East of England Development Agency would be more effective.

Technology companies rate the health of the wider economy as the biggest barrier to growth this year. Over a third (36%) of IT companies see acquisition or partnership as an opportunity to grow, compared to an average of 16% overall. Attracting new customers is the top priority for 43% business services companies.

None of the technology companies surveyed were looking to cut their IT budgets, 50% were looking to increase their budget with 50% keeping it at last year’s level. Technology companies were naturally more interested in exploring new IT developments, with Enterprise Resource Planning (ERP) systems, integration of Microsoft applications and mobile computing solutions topping the wish list.
Nearly two thirds (64%) of technology companies did not have a customer relationship management system in place, but 29% are planning to implement one in the next 12 months. Maximising sales opportunities and managing customer and prospect databases were the top priority uses for a new CRM system.

Surprisingly, 57% of technology businesses surveyed did not measure return on investment (ROI) on their IT spend, though 21% looked for ROI within a year.

Ray Olds, chief executive officer, Cambridge Online, commented:
“Technology companies outperformed other business sectors across the Eastern region, and they managed to streamline systems and processes rather than lose staff. A return to growth brings new challenges, such as attracting skilled staff and which areas to invest in a business. These businesses are looking at a range of IT developments, especially CRM, which will help to maximise new sales opportunities. With any investment, it is important to measure ROI and we hope we could help businesses in this sector to implement effective methods of measuring ROI.”