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Gartner: IT budgets flat despite economic jitters

Andy McCue silicon.com

Published: 08 Apr 2008 09:44 BST

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 percent) of the 1,011 chief information officers (CIOs) questioned reported no change in their 2008 IT budgets, despite the economic jitters experienced in the first quarter of the year.

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

Just 15 percent reported an increase in their technology budgets, with an average increase of 15 percent.

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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 no longer the "target-rich" area for cost cutting that they have been in the past, there is some "softness", particularly in the US, where the economic downturn is biting more deeply.

US IT budget growth has slowed from 3.1 percent to 2.3 percent, but it has increased in Europe to 3.86 percent and in Asia Pacific to 5.98 percent.

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

Mark McDonald, group vice president 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."

Credit: Tech budgets escape belt-tightening cuts from silicon.com