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Economy Crisis to Hit IT Budgets in Europe and N.America

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Economic Crisis

Bangalore: The Slowdown of economy is likely to hit the estimated IT budgets in Europe and North America says Gartner. As per a report by TOI in 2012 due to the economic slowdown which is having a major impact on investments the public sector and large companies of Europe and North American Regions will experience a dip in their technology budgets, Gartner Survey.

The Survey done by Gartner included CIOs from 37 Industries across 45 countries these CIOs surveyed manage a total 321 billion dollar IT budget. Around two thirds of total technology investments are made through IT budgets. Investments are expected to go down by 0.6 per cent in North America and Europe will have 0.7 percent which is more or less equal to the global budgets of 2011. Gartner mentioned that the bigger organizations having more than 500 million dollar IT budgets will continue to spend less and cut expenditure.

However the survey showed that IT budgets in Latin America were set to rise 12.7 percent because of the strong appetite for investment, whereas Asia-Pacific regions are on a roll to see the budgets rise by 3.4 percent.

"It looks pretty much correlated to the macro economy," said Gartner analyst Dave Aron. "Large companies, the multinationals, are much more hostage to the macro economy. For them there is almost no way to avoid these pressures," Aron said. He also mentioned that in Germany its observed that the IT budgets are going down by 5.6 percent the reason being country’s export-dependent large companies. Whereas on the other hand the IT budgets in Spain are seen rising by 2.9 percent during the course of the way to recovery from a recent slump.

Through a global perspective Business Intelligence (BI), analytics and mobile technology sectors have topped the list of investment priority, according to Aron these sectors are likely to remain that way unaffected by the total budget issues.

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