Monday, September 8, 2008

IT spending slows

More than 40 per cent of large businesses have cut their IT budgets this year because of the global economic slowdown, according to a report set to be released on Tuesday.

Forrester, the US-based research company, found that 43 per cent of companies have already cut their overall IT budgets in 2008, while 24 per cent have put discretionary IT spending on hold.

Although the overall figures indicate a reduction in IT spending, the report highlighted wide differences between countries, sectors and types of IT spending.

“This is not an across-the-board spending slowdown. The impact of the economy on IT budgets varies widely by industry and geography,” said John McCarthy, an analyst at Forrester. “Some industries are like ground zero for financial problems, such as financial services, construction and autos. The further you move away from those industries, the less severe the problems are.”

Another obstacle for tech tomorrow morning.

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