Firms slash IT spending in response to poor economy


Firms slash IT spending in response to poor economy

Antony Savvas

More than 40% of large businesses have cut their IT budgets this year due to the global economic slowdown, according to research from analyst Forrester.

The research was based on a survey of almost 1,000 IT managers across North America and Europe.

The survey found that 43% of firms have already cut their overall IT budgets in 2008 in reaction to the slowdown in the global economy, while 24% have put discretionary spending on hold.

Only 28% of respondents said the economy has had no impact on their IT budgets.

IT departments in the financial services industry were hit hardest, with 49% of IT shops in the financial services sector having seen a cut in budgets.

IT departments in North America have been impacted by the economy more than their counterparts in Europe. The survey found that 49% of North American firms have cut their IT budgets, compared with 31% of respondents in Europe.

"This is not an across-the-board spending slowdown the impact of the economy on IT budgets varies widely by industry and geography," said Forrester Research analyst John McCarthy.

Dell recently blamed a profits drop on a slowdown in IT spending.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

COMMENTS powered by Disqus  //  Commenting policy