Global economic problems are impacting IT budgets, however, the IT
industry will not see the dramatic reductions that were seen during the
dot.com bust, according to Gartner, Inc. At that time, budgets were
slashed from mid double-digit growth to low single-digit growth.
“In a worst case scenario, our research
indicates an IT spending increase of 2.3 percent in 2009, down from our
earlier projection of 5.8 percent,” said Peter
Sondergaard, senior vice president at Gartner and global head of
Research. “Developed economies, especially the
United States and Western Europe, will be the worst affected, but
emerging regions will not be immune. Europe will experience negative
growth in 2009, the United States and Japan will be flat.”
Mr. Sondergaard provided the latest outlook for the IT industry during
Gartner Symposium/ITxpo, which is taking place here through October 16.
Gartner said the events of the past two weeks will have an impact on IT
budgets in the fourth quarter, but it will not change 2008 substantially.
The IT industry went through more dramatic reductions during, and after,
the recession of 2001. Mr. Sondergaard said many lessons were learned.
“We learned that in tumultuous times, CEOs
want their executives and managers to be advisors and counselors, not
just great implementers of directions given to them,”
Mr. Sondergaard said. “What they want now most
of all is agile leadership. Leadership that can guide us through
simultaneous cost control and expansion at the same time.”
Organizations now view IT as a way to transform their businesses and
adopt operating models that are much leaner. Other reasons that IT will
not see more severe reductions include:
IT is embedded in running all aspects of the business
The shift to multi-year IT programs aligned with business, and they
are difficult to cut immediately
IT spending decreases lag the economy by at least two quarters
Gartner analysts are discussing the key issues facing the IT industry
during Gartner Symposium/ITxpo. This event is the IT industry's largest
and most-strategic conference, providing business leaders with a look at
the future of IT. Nearly 6,000 senior business and IT strategists will
gather for the insights, tools and solutions they need to ensure their
IT initiatives are key contributors to and drivers of their enterprise's
success. Gartner's annual Symposium/ITxpo events are key components of
attendees' annual planning efforts. They rely on Gartner Symposium/ITxpo
to gain insight into how their organizations can use IT to address
business challenges and improve operational efficiency. Additional
information is available at www.gartner.com/symposium/us.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology
research and advisory company. Gartner delivers the technology-related
insight necessary for its clients to make the right decisions, every
day. From CIOs and senior IT leaders in corporations and government
agencies, to business leaders in high-tech and telecom enterprises and
professional services firms, to technology investors, Gartner is the
indispensable partner to 60,000 clients in 10,000 distinct
organizations. Through the resources of Gartner Research, Gartner
Executive Programs, Gartner Consulting and Gartner Events, Gartner works
with every client to research, analyze and interpret the business of IT
within the context of their individual role. Founded in 1979, Gartner is
headquartered in Stamford, Connecticut, U.S.A., and has 4,000
associates, including 1,200 research analysts and consultants in 80
countries. For more information, visit www.gartner.com.
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