Study predicts cutbacks in IT spending

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Study predicts cutbacks in IT spending

Worldwide corporate IT spending in 2002 will be slightly lower than in 2001 - the first time a drop has ever been recorded.

The global economic downturn has begun to affect corporate IT spending, practices and performance, said Meta in a report entitled Worldwide IT Trends & Benchmark Report 2002.

The report, released on 23 October, used information gathered from more than 18,000 IT contacts worldwide.

Meta predicts that corporate IT spending in the US will fall by 2-5% next year, compared with an 8% increase in 2001.

A recent survey of chief information officers worldwide showed that half have already reduced their budgets to adjust for the economic climate. However, they are still spending on Web-based technologies such as customer relationship management (CRM) and e-commerce projects, emphasising data centres, operations and infrastructure development, said Meta.

Other findings include:
  • IT staff workloads increased this year, as companies cut their workforces and programmers produced an average of 50 thousand lines of code (Klocs), compared with 42 Klocs in 2000


  • Half of worldwide IT development is done in a Windows environment targeted at networked workstations


  • C++ and Java are still the programming languages of choice, although simpler languages such as HTML, JavaScript and Visual Basic have enhanced productivity


  • Investment in IT training has risen again, with companies worldwide averaging 9.05 training days a year - up from 8.44 in 2000


  • IT salaries in the US are up by 9% this year, compared with 6.6% in 2000, with the greatest pay increase for project leaders, business analysts and metric specialists. IT salaries outside the US are generally much lower


  • Worldwide IT staff turnover rates have decreased


  • The hardest jobs to fill were systems analyst and design positions. Database analysts and support programmers were comparatively easier to recruit

Increased productivity has become a top priority for US companies. Outsourcing and business process engineering have become the lowest-priority items. Although productivity rose rapidly last year, Meta claimed that the overburdening of IT staff cannot continue indefinitely.

Further information:
Meta Group: www.metagroup.com
Related Topics: IT governance, VIEW ALL TOPICS

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