Intellect: Overseas investment needed to boost IT sector

Britain needs to make sure it continues to attract IT investment from overseas if it is to emerge from the recession in the strongest position possible, according to Intellect.

Carrie Hartnell, head of industry strategy at the UK IT industry association, said that attracting a steady level of overseas investment will help propel the economy towards recovery more quickly and create more jobs.

She added that the UK faces stiff competition from countries such as the US, South Africa and China, all of which are also looking to attract foreign investment.

Ms Hartnell said: "Not only is investment in technology for companies [important] but also encouraging more technology companies to locate here and to develop their research and development here."

More businesses are developing a reliance on the IT sector for faster broadband connectivity and more effective VoIP hardware.

Over 75,000 new businesses will be created within the IT industry within the next four years, according to research from International Data Corporation and Microsoft.