IT budgets slashed at over 40% of companies
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The economic downturn has caused considerable reductions in IT spend at many businesses, says anaylst firm Forrester.
The impact of the economic downturn on IT budgets varies by country, industry, and sector, but nonetheless in 2008 43% of large businesses have cut back on IT spending according to findings by research firm Forrester.
A further 24% of large businesses in the
The report found an increasing number of companies are considering offshoring as a cost-cutting measure, with 43% saying they were exploring the option. Only 9% of the companies surveyed are currently offshore.
The effects of the downturn are industry specific, says Forrester analyst John McCarthy.
“This is not an across-the-board spending slowdown,” he says. “Some industries are like ground zero for financial problems, such as financial services, construction and autos. The further you move away from those industries, the less severe the problems are.”
Some companies are going against the grain, spending more on IT in the hope that technology will trigger a shift in fortune. Retailer M&S recently earmarked £450 for IT spending over a three-year period, despite a plummeting share price and less than impressive revenues.
Further reading:
M&S battles UK retail downturn with £450m IT spend Marks & Spencer earmarks £450 million in IT spending despite plummeting stock price
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