Chief financial officers (CFOs) are increasingly concerned that the UK economy is going back into recession with high levels of uncertainty likely to have a knock-on effect on IT leaders
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Research from business consultancy Deloitte revealed that CFOs believe there is a 54% chance of the UK having a double-dip recession.
The break-up of the Euro is the biggest concern for most CFOs, with many expecting one or more member states to leave the single currency.
With CFOs “pricing in a UK recession,” CIOs are likely to be hit by reduced budgets alongside pressure to do more for less.
“CFOs are working on the assumption that the UK is likely to fall back into recession,” said Deloitte.
New IT investments could suffer as a massive 87% of the CFOs interviewed said it is a bad time to take extra risks in terms of spending.
This marks a change from a year ago when businesses saw a recovery on the horizon. “CFOs entered 2011 with a focus on expanding into new markets and increasing spending; they enter 2012 with a focus on cutting costs and increasing cash flow,” said the report.