Welcome to the first of a series of special bi-monthly features hosted by SmallCapNews.co.uk. During the course of November and December we are turning the spotlight on the IT & Software sector with a series of articles and profiles looking at the challenges and opportunities faced by small cap companies in the industry.



The opinion and insight here is designed to be an informative and interesting analysis for anyone wanting to know about the finer points of a sector that has seen, and sometimes endured, huge upheaval during the last 10 years.

As the feature progresses more news, features and profiles will be added and we would welcome suggestions and contributions from our readers.

In his keynote article Charles Ward at the IT and software industry association Intellect claims that despite the huge challenges faced by small cap quoted companies in the sector, opportunities for them to become hugely successful still remain.

Ward’s point is that where, for the last decade, success has been largely judged on technological innovation, these days the companies that succeed are the ones that can prove that their innovation makes a difference in a business setting. In other words, end-users are familiar with technology – what they really want to know is how they can use it to cut costs or speed up processes inside their business.

This all sounds very straightforward and perhaps it would be except for the fact that the economic savaging that ripped through the sector seven years ago is back. Okay, this time it isn’t simply a flight from technology - many more industries are being hit - and this time, just maybe, the sector is mature enough to weather the beating rather better.

In his keynote article, Tom Moriarty at investor relations specialist ICIS argues that companies need to maintain their communication with the City in the bad times if they are to be remembered in the good times. It’s a tough approach, particularly at a time when many companies will feel so aggrieved at their share price performance that delisting is a real option. Nevertheless, as Moriarty – and most others – insist, the market will come back sooner or later and when it does the opportunities should be there for the companies that have prepared for the longer term.