Companies are still wary about increasing spending on information technology, the chief executive of Logica cautioned as the Anglo-Dutch IT services company reported better-than-expected first-half profits after a round of cost savings.

Andy Green said he expected revenues for the IT services sector to move in line with the economy, a more downbeat assessment from earlier this year when he expected the industry to slightly outperform. He expected Logica’s sales for 2009 to fall about 2 per cent.