CIO to IT Vendor: I Don’t Have Money
Not a good news for tech suppliers but that’s IT. In the ongoing tough
economic environment, IT spending budgets will remain flat with a
meagre 0.16% increase in 2009, according to results from the 2009 CIO
survey by Gartner Executive Programs (EXP). Another researcher IDC
expects 2.6% growth in spending.
The
worldwide survey of 1,527 CIOs was conducted by Gartner EXP from
September 15 to December 15 2008 and represents CIO budget plans
reported at that time. Flat IT budgets were found across enterprises
in North America and Europe, with slight increases in Latin America
and a slight decrease in Asia/Pacific, says Gartner.
The
Gartner EXP CIO report "Meeting the Challenge: The 2009 CIO Agenda"
covers business priorities and CIO strategies. According to the
research firm, the CIOs surveyed represent more than $138 billion in
corporate and public-sector IT spending, encompassing 1,527
enterprises across 48 countries and 30 industries.
Another research firm IDC has also expressed its concerns over slow IT
spending. It says worldwide spending on information technology will
slow significantly in 2009 because of the financial crisis that began
in September 2008. But it’ll still witness growth. According to
revised forecast from IDC, spending will grow 2.6% year over year in
2009, down from its pre-crisis forecast of 5.9% growth.
In
October last year, Gartner had said that despite economic slowdown,
worldwide
IT spending will exceed $3.4 trillion in 2008, an increase
of 8% from 2007. Growth is largely based on the decline in the U.S.
dollar.
While
software spending will go up by over 10%, IT services spending ranks a
close second with more than 9.4% growth. Major contribution is coming
from the telecom sector, which will spend nearly $2 trillion in 2008,
Gartner had estimated.
In
the current year, different
tech segments will witness mixed response
from the market.
