TITLE

IT Spending Slump? Get Used To It

PUB. DATE
January 2005
SOURCE
Business Communications Review;Jan2005, Vol. 35 Issue 1, p6
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article focuses on the findings of Meta Group Inc. on information technology (IT) spending. According to it, enterprises have shifted from more aggressive to cautious in their fundamental approach to IT spending, which means the slowdown has become a longer-term reality. Meta Group projects a modest 4-5 percent increase in IT spending this year. Meta further contends that this level of annual earning is likely to be the norm going forward. Howard Rubin, senior vice-president at Meta said, that unlike the technology boom wherein companies threw money against a whole set of technologies or the IT recession wherein companies cut spending across the board, the new IT reality is being driven by efficiency. Of 32 technology investment areas sampled, only two--security and Web applications development--will receive higher spending this year than last. The shift from fixed to variable costs will also drive outsourcing, and be reflected in the percentage of the IT workforce that's employed in-house versus via outsourcing, according to Meta.
ACCESSION #
15739317

 

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