Wednesday, November 12, 2008

2009 IT spending outlook: could be worse

Over at Computer Economics, we've just released the results of a special survey of IT executives, conducted in October 2008. In light of the current turmoil in world financial markets, the findings are a bit contrarian. According to the report's media alert:
IT organizations decidedly stepped up their cost-cutting measures in the third quarter of 2008. Nevertheless, as they head into 2009, most IT executives are not anticipating deep cuts in IT operational spending or staffing levels, according to a new survey by Computer Economics, an IT research and advisory firm in Irvine, California.

In the October survey of 159 North American IT organizations, one-quarter of the respondents anticipate spending reductions of at least 3%. But another quarter anticipate that their IT operational budgets will rise by at least 5%. At the median, IT organizations forecast that their spending growth will be flat.

IT executives are also focused on retaining their current employees. IT organizations at the median and 25th percentiles forecast no change in their headcount in 2009, while companies at the 75th percentile are actually forecasting a 5% growth in staffing levels.
The full report, Outlook for 2009 IT Staffing and Spending Levels, is available on the Computer Economics website, along with an executive summary.

1 comment:

Anonymous said...

Seems a little overly optimistic. Many of these decisions are not being made by CIOs and are instead being made at the CFO, CEO and board levels. If you're a CIO and you haven't been 'handed' a number yet, it's coming. Best advice is to get proactive about your budget by tying back business value to expenses in terms the business can understand. In addition, you may want to consider a "zero based budgetting" exercise to prove to yourself and your organization that various costs are warranted. We had one CIO tell us his CFO asked him five times for a 10% reduction - the first four times the CIO was successful in doing it, so the CFO kept asking for more.