Spending cuts
Western economies are likely to be hit hardest by IT spending cuts

IT spending to slow next year

Gartner predicts growth of just 2.3 per cent in 2009

Written by Phil Muncaster

IT spending will slow in 2009 as the economic crisis takes hold, although budgets will not be affected as they were in the aftermath of the dotcom crash, according to Gartner.

The analyst firm's latest research estimates an IT spending increase of 2.3 per cent in 2009, down from earlier projections of 5.8 per cent, with Western economies likely to be hit hardest.

"We learned that, in tumultuous times, chief executives want their executives and managers to be advisors and counsellors, not just great implementers of directions given to them," said Gartner analyst Peter Sondergaard.

"What they want now most of all is agile leadership. Leadership that can guide us through cost control and expansion at the same time."

Gartner predicted that IT spending will not be cut more severely because IT is so heavily embedded in organisations.

The analyst firm also argued that, in the current economic climate, IT leaders need to continue innovating and evaluating whether their applications serve a genuine business need.

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