IT belt tightening has continued through the first two months of
2002 with no rebound expected this year, according to a survey of
IT spending released by The Goldman Sachs Group.
Almost 90% of 100 IT managers with strategic decision-making
authority at multinational Fortune 1,000 companies believe their
long-term spending growth will rise just 10% or less this year. The
percentage of IT managers saying that rose from 83% and 70%
respectively in Goldman Sachs' January and November surveys.
About one third of the respondents now expect a return to normal IT
spending in 2002, while almost two-thirds of those surveyed said
normal spending would not return until next year or beyond.
"The implication is that a potent spending recovery in the second
half of 2002 feels increasingly unlikely," the report stated.
On the upside, two-thirds of those surveyed indicated that this
represents a buyers market, making it easier to pressure vendors
into lowering prices. The survey also found that business
continuance and security software still hold the top spending
slots.