If anyone needs proof that the North's software and IT sector is still in the game then they should look no further than the chairman of its industry body, Mr Jonathan Currie.

In the midst of the high-tech downturn in the United States, Mr Currie's company, NiSoft, a Belfast-based software firm, has just clinched a £1 million sterling (€1.6 million) contract with Xcel Energy, the American utility giant.

The company, which employs 35 people, fought off major American competitors to win the deal to install its software in 36 electricity generation plants throughout the US.

GEM, the global e-mail company, is another Belfast company which is determined to buck industry trends. While internet firms around it are issuing profit warnings and redundancy notices, it is winning new customers and recruiting hundreds of additional staff.

According to Mr Billy McClean, chief executive of Momentum - the Northern Ireland ICT Federation, companies such as NiSoft and GEM are helping to reposition the sector in the North.

"There is no doubt that many companies are finding it tough at this time. The lack of confidence in the economy means that purchase decisions are taking longer and smaller firms are finding it much tougher because of this.

"Half of our member firms in Northern Ireland report an impact on their business as a result of the slowdown in the economy, but others are relatively optimistic and are talking about growth," Mr McClean said.

He believes the composition of the ICT and software sector in the North is one reason why it has not been subjected to major job losses.

"Generally in Northern Ireland we have been buffeted from the downturn in the ICT and software sector because to a large extent we have a different mix of companies from, for example, the Republic.

"The exception is the likes of Nortel, where there have been significant job losses. Many of our members are in telecoms-related industries and obviously we have seen the knock-on problems of this sector impact on Northern Ireland companies," Mr McClean added.

The ICT and software sector employs around 9,000 people in the North and Momentum believes the fall-out from the terrorist attacks on the United States and the depressed economic outlook will continue to impact on the sector's performance over the next couple of quarters. But according to Mr Owen Lamont, chief executive of GEM, the events of September 11th have had a much different effect on its business.

The company, which provides an e-mail answering service from its Belfast offices to a variety of global organisations including the online retail giant Amazon, has seen an increase in its business.

Mr Lamont said: "More people are sending electronic mail in the US possibly because of the anthrax threat and we are also getting a lot more inquiries about our services from potential clients.

"American companies are reluctant to travel to some regions such as Asia and the Middle East at this time to source new business providers and as a result are seeking partners in the UK and Ireland."

The company, which was established in 1999, employs 480 people but is confident that this number is set to grow over the next few months.

"There has been a much needed shake out in the dotcom world and many of the no-hopers have simply disappeared. Companies like GEM who provide value-added services and who know how to spoil their customers may find the business cycle more challenging but we are here to stay.

"We are a company with our roots in Northern Ireland and that is what makes the difference in an economic downturn, companies generally do not close down their operation in their own backyard," Mr Lamont said.