Many organisations are taking a step backward and putting major
IT decisions on hold while they revisit their
strategy during the recession, according to analyst IDC.
"Companies are rethinking their top priorities, looking at
projects that will provide an immediate return on investment,
deferring large new IT projects, and
turning to outsourcing to lower their cost structures," said
Laura Converso, research manager, IDC European Software and
Services.
IDC has predicted that
IT training will decline by 10.4% as educational activities
continue to be cancelled or replaced by on-the-job instruction
during the downturn. However, outsourcing is expected to grow by
4.2%.
IDC has predicted a decline of 3% in project-oriented activities
for 2009 as CIOs continue to delay decisions about new project work
and adds-on to already deployed systems. In contrast, demand for
application outsourcing and application consolidation and
optimisation remains strong, as clients are seeking opportunities
for short-term cost reductions.
IDC expects a slow recovery to start in 2010, with a modest 1.3%
growth. According to Converso, IT services companies that have
progressed quickly transforming their cost base towards a more
global and industrialised service delivery will gain share at the
expense of those with a lower level of industrialisation.
IDC's findings reflect a
recent Confederation of British Industry survey, which found
that business investment plans will shrink by 9.3% over 2009 and a
further 3.4% in 2010.