IT Spending Confidence Fell In 2008
A growing number of IT decision-makers expect budget and staff cuts during the first half.
January 8, 2009
![Network Computing logo Network Computing logo](https://eu-images.contentstack.com/v3/assets/bltde8121fc52c5c8f3/blt3f3d0318f746b1c2/65a530e4187606040a1d8b8c/placeholder.png?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
IT spending confidence among enterprise decision-makers dropped five points from October to November, according to a bimonthly report.
CDW IT Monitor said that decision-makers' decreasing expectations about growth drove its index to a 2008 low. However, most large companies (84%) and mid-size businesses (77%) plan to buy new hardware. Eighty-seven percent of large companies and 78% of mid-size businesses plan to buy software.
"Despite market changes, many organizations continue to recognize the value of IT as a strategic investment," CDW VP Mark Gambill said in a statement. "Companies that use IT as a mechanism to achieve greater productivity and efficiencies in this tough time will have a better chance of coming out of this economic downturn with greater momentum."
Still, 20% of decision-makers predict budget cuts in the first half of this year. That's up eight percentage points from October. About 30% of all government IT decision makers foresee budget cuts in the next six months. That includes 38% of state IT decision makers and 19% of federal IT decision makers. Those percentages are up about 7.5% from October.
The number of respondents who expect staff reductions also grew as 2008 ended. Five percent of decision-makers at businesses with 99 employees or less said in December that they plan to cut staff. That's up from 3% in October. Ten percent of those at companies with 100 to 999 employees expect staff cuts, compared to 4% in October. And, 16% of those at businesses with 100 employees or more predict staff reductions, compared with 7% in October.
The outlook has dimmed significantly from previous predictions in the first three quarters of 2008.
Read more about:
2009About the Author
You May Also Like
Maximizing cloud potential: Building and operating an effective Cloud Center of Excellence (CCoE)
September 10, 2024Radical Automation of ITSM
September 19, 2024Unleash the power of the browser to secure any device in minutes
September 24, 2024