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IT spending to drop to 2.3 percent: Gartner
By siliconindia
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Thursday, 16 October 2008, 16:28 IST
Bangalore: IT insecurity to grow more with Gartner, an IT research firm, wiping out its earlier assumption on IT spending to grow at 5.8 percent for 2009, predicting that it can drop to 2.3 percent. In fact, as per the prediction it is the developed economies particularly U.S. and Europe who will feel the ultimate pinch.
However, according to the research firm unlike U.S. and Japan where IT spending may fall flat emerging economies will see a much higher growth rate. The main cause behind this drastic fall is the ever fluctuating stock market and the stagnant credit market. But the kind of recession seen during the dot-com bust will not be witnessed in the present, since there's been a shift to multi-year IT programs that are difficult to cut immediately. Moreover, the role of the executives has changed from being just blind followers of instructions to advisers and counselors.
Even Forrester had predicted that firms will lower their IT spending next year though it maintained that there will be a growth by 5.4 percent in 2008.
