Only those IT projects deemed business critical will be funded this year, as doubts linger as to whether the economy has truly recovered.
Industry analyst Gartner has responded to growing pessimism regarding the end of the recession by trimming its original estimate of a 5.3 per cent increase in IT spending down to 3.9 per cent.
Worries over the euro and cuts to public sector spending are fuelling pessimism, and Richard Gordon, research vice president at Gartner, says that all spending must be fully justified. “CIOs are seeing only marginal increases in budgets and are constrained to essential enterprise IT spending with discretionary spending still on hold.”
The biggest growth area will be PC buying which is set to grow 9.1 per cent. “Professional shipments will be buoyed by a new replacement cycle and migration to Windows 7,” says Gordon.