Smaller vendors in the software and IT services sector are optimistic about escaping the credit crunch over the next year, according to a survey by IT industry body Intellect.

More than half (53 per cent) of respondents are forecasting double-digit growth for 2008, compared to 49 per cent that predicted similar increases last year.

Small and medium-sized enterprises (SMEs) have the ability to respond to market changes and customer needs more quickly than large vendors, said Nigel Hartnell, chairman of Intellect’s software group.

“The results from this survey show that in today’s economic climate, some SME software companies are finding their size an advantage, not a hindrance," he said.

Optimistic respondents were mostly in the services, telecoms, public sector and banking sectors.

But these positive predictions are not matched by the amount of activity companies are reporting in the public sector and the financial services sector.

From 2006 to 2007 the percentage of respondents supplying the two sectors dropped from 28 per cent to 27 per cent, and 35 per cent to 27 per cent respectively.

The survey also found SMEs seem to be embracing globalisation.

In last year’s survey, 59 per cent of respondents identified globalisation as having a neutral or negative impact on their business. But in 2007 57 per cent of respondents saw globalisation as having a positive impact on their business.