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SMEs reduce IT budgets

Economic uncertainty is causing small and medium-sized enterprises in the UK to either reduce IT budgets or defer decisions about...

Economic uncertainty is causing small and medium-sized enterprises in the UK to either reduce IT budgets or defer decisions about IT spending, according to a survey by research company Rhetorik.

Rhetorik found that 55% of SME IT directors questioned have reduced their spending this year, and 41% said they will have to wait until next year to see if plans for investment in IT will be shelved.

"The findings show caution rather than slowdown," said Claire Cook, marketing director at Rhetorik. "SMEs are concentrating on their core support infrastructures such as implementing Fast Ethernet and Giganet in their Lans as well as choosing technologies that will make the most of their existing infrastructure such as VoIP and Wireless Ethernet."

Surprisingly, 82% of the sample rejected the idea of using application service providers or outsourcing their IT - services that are usually associated with cost savings.

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