IT spend in UK private and public sector organisations has fallen since last year, with average expenditure dropping 0.6% per user to £3,275, 2.48% of total spend, research has shown.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
But while private sector companies expect IT spend to remain the same or increase marginally, 91% of central government and 81% of local government respondents expect significant decreases in their budgets, according to the survey from corporate membership body The National Computing Centre (NCC).
"For most, investments in IT have fallen year-on-year in real terms," said Steve Fox, managing director of NCC. "The danger with this is that a lack of investment will impede the pace of recovery when the economic climate improves."
Of the 160 organisations interviewed, 44% expected application developments to be postponed or cancelled. Operational spending averaged 39% of total IT spend, but is expected to decline by 6.4% over the year.
"With the threat of a double-dip recession, it is not surprising that spending remains depressed," Fox said. "The situation is a catalyst for widespread take-up of cloud, virtualisation and mobile working technologies, which promise similar levels of service, but can be achieved with less capital outlay, are scalable and enable organisations to save costs in other areas."