GARTNER SAYS IT SPENDING TO SLOW IN 2009, BUT GROWTH TO CONTINUE

Mumbai
Business Standard | The Economic Times | The Hindu Business Line | 

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, says Gartner.

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 per cent in 2009, down from our earlier projection of 5.8 per cent,” 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,” he further added.

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.

Gartner also mentions that in such situation the role of the management also under goes change.

“We learned that in tumultuous times, CEOs want their executives and managers to be advisors and counsellors, not just great implementers of directions given to them. 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.”

Organisations now view IT as a way to transform their businesses and adopt operating models that are much leaner.

IT will also not see severe reductions this time as it is embedded in running all aspects of the business and a shift to multi-year IT programs aligned with business, which is difficult to cut immediately.