In today’s information society created by developing technology more and more firms base their business on the utilization of intangible resources. The goal of this thesis is to investigate the ways in which SME’s in the ICT-sector manage their intellectual capital in terms of measuring and competence development. To support this point of view the thesis also examines how the companies see the concept of intellectual capital and its effect on business performance. The study of this paper in conducted as a qualitative research by interviewing three ICT-firms. The examination is done from the firm’s point of view by having people in a managerial position as the interviewees. ICT-companies are chosen as the material of the study since the industry interestingly combines high technology, changing environment and high volume of intellectual capital. The results of the study indicate that companies value intellectual capital as their most important resource and source of competitive advantage. When it comes to measuring, the indicators used by firms are far less complicated than the models suggested by literature. Employee and customer satisfaction stand out as the most valuable measures of intellectual capital. These elements are even measured with multiple indicators. In development, the literature strongly supports informal ways of learning such as learning at work and internal training. These methods can be also found in the study results and their significance is seen to be rising in the future. As a difference from the literature the results show recruiting as the most valuable method of competence development.