In house comms directors believe that there will be less outsourcing of reputation management services in the current environment. Almost two thirds (68 per cent) agreed that there will be less spending on external agencies and suppliers in the recession.

However, according to the Ipsos Mori survey, reputation management remains vital for senior communicators, with 88 per cent thinking it is more important then ever, offering opportunities for agencies that can demonstrate real value.

Ipsos Mori questioned 40 senior communicators from leading companies on its Reputation Council including Tesco, GlaxoSmithKline and Unilever.

‘The PR agencies that will succeed in the current market will be those that can up their game' said head of the reputation centre Milorad Ajder. ‘Budgets are under pressure, but at the same time reputation is seen as increasingly important. In other words, there is a real opportunity for agencies that can show a clear connection between their activities and the bottom line.'