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Small firms 'plan 2010 IT investment'

Small businesses are committed to investing in IT despite the ongoing economic downturn, according to a new study.

Research carried out by O2 found 65 per cent of small companies believe that investment in technology has boosted their performance, with increases in communication and greater worker flexibility cited as the two biggest benefits.

The poll discovered that two-thirds of firms plan to maintain their IT expenditure at its current level in next year's budget, while 16 per cent will increase it.

Simon Devonshire, head of small business marketing at O2, said: 'Small businesses have been quick to recognise and capitalise on the benefits of technology in 2009.'

He added that while some IT investment plans have been postponed this year because of the recession, the top firms realise that technology will be necessary for post-recession success.

A recent poll by industry analyst Gartner showed 62 per cent of chief executives think that IT-enabled changes will be a critical part of their company's post-recession strategy, while just 13 per cent disagreed.

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