NCC sees demand rise as relationships sour

RELATIONSHIPS between businesses and their software suppliers grew increasingly strained during 2009, according to IT security firm NCC group.

The Manchester business helps companies protect against the collapse of software developers by holding vital source codes which it will release if a software supplier becomes insolvent, or defaults on contractual obligations.

The service, dubbed an escrow agreement, is designed to allow a company to continue to operate its IT systems with minimum disruption.

In a statement NCC said the rate of these releases increased by 150% in 2009 and they are predicted to stay high as UK economic growth remains flat.

Jon Leigh, operational director for Escrow UK & Europe at NCC, said: “As with so many supplier-customer agreements in 2009, a number of software providers have struggled to stave off insolvency and have seen client relationships tested as a result.”

He added: “Whilst many businesses are finding themselves in the unfortunate position of having to chase partners for payment, or even source new suppliers, it is easy to forget the very real risk of losing the ability to use and maintain one of their most valuable assets – their business critical software.”