The appointment of the new chief executive officer of Tesco signifies how important the technology industry, and therefore IT contractors, will be in encouraging future business growth.

This is the view of the Recruitment & Employment Confederation (REC), which claims that the decision to promote Philip Clarke, the former Tesco IT director, to the top job at the supermarket indicates the importance of "IT thinking".

Mr Clarke replaces Sir Terry Leahy, who has seen Tesco become the UK's biggest retailer under his 14-year stewardship.

Tesco already account for one in every pounds spent in the UK, so the fact that its future growth will be dictated by Mr Clarke is "welcome news" for the IT sector, according to Jeff Brooks, chair of REC Technology.

"This shows that over the next decade IT, IT functions and IT strategic thinking will be the most important factor determining whether businesses thrive or languish," he added.