No longer recession proof
Last modified on Wednesday, 10 September 2008 04:39
It looks like companies are finally starting to get around to cutting IT spending.
Many observers have noted that this economic slow down has not featured cuts in computer spending and some of the key players have done quite well. But now a Forrester Research report claims many large companies, especially those in the financial services, utilities and telecommunications industries, have cut their technology budgets.
More than 43 percent of large U.S. and European businesses it surveyed have cut their overall spending on technology products and services in 2008. Some have put discretionary spending on hold and others want to negotiate lower rates for IT services. Forrester had said it expects tech spending to grow 2.8 percent this year. That marked a significant downward revision from a December 2007 forecast of 4.6 percent growth.
Now it thinks that might be a bit optimistic and is considering a review of that figure. The report said that corporate technology buyers were less optimistic than they were in the last such survey before the credit market tightened and the housing market went tits up.
It added that U.S. companies were more likely to cut their budgets than those in Europe.