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Story URL: http://management.silicon.com/itdirector/0,39024673,39183831,00.htm

Tech budgets escape belt-tightening cuts
But some jitters in US as recession looms…

By Andy McCue

Published: Monday 07 April 2008

Global IT budget growth remains flat despite the current economic climate and fears of a recession, according to Gartner's latest survey of more than 1,000 organisations.

Almost two-thirds (62 per cent) of the 1,011 CIOs questioned reported no change in their 2008 IT budgets, despite the economic jitters experienced in the first quarter of the year.

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But the economic fears have started to bite for some organisations, with almost a quarter of CIOs (23 per cent) saying their IT budgets have been cut - with an average decrease of 10 per cent.

Just 15 per cent reported an increase in their tech budgets, with the average increase 15 per cent.

The study, aimed at gauging the impact of global economy fears on IT budgets, asked CIOs if their 2008 IT budget had changed since it was finalised. Gartner found that while IT budgets are not the "target rich" area for cost cutting as they have been in the past, there is some "softness", particularly in the US, where the economic downturn is biting more deeply.

US tech budget growth has slowed from 3.1 per cent to 2.3 per cent but it has increased in Europe to 3.86 per cent and in Asia Pacific to 5.98 per cent.

But Gartner warned CIOs to have contingency plans for more IT budget cuts later this year if the economic situation worsens.

Mark McDonald, group VP and head of research for Gartner Executive Programs, said in a statement: "Given economic conditions, CIOs should be prepared and have a contingency plan for both increases or decreases in the next 90 days by the end of the second quarter of 2008."