A survey of investment companies has found that a massive 67% of IT industry investors believe European spending will decline in 2012, while 19.1% think budgets will stay the same.
The findings suggest significant economic uncertainty in Europe, with only 13.8% of respondents expecting companies in Europe to spend more on IT next year than last year.
The research from investment bank Jefferies found more confidence in US IT spending, with over 48% of those surveyed expecting US IT budgets to rise next year, and just 27% expecting US IT budgets to decline. Some 24.7% believe IT budgets will remain flat in the US.
A total 35% of respondents said they think IT budgets for European companies will decrease more than 3% in 2012, compared with 2011, while 15% felt the same way for US corporate IT budgets.
This year's budgets might take longer to put together. The company said although budgeting for 2012 has begun, the economic uncertainty might delay the completion of budgets: "Our recent discussions with industry contacts suggest that there are some signs of potential delays in the IT budget-setting process for 2012. We believe that despite the current climate of macro volatility and uncertainty, the budget process has begun on time, but in some cases may take a little longer to finalise."