News
IDC: IT Budgets Down in 2008
IT execs are focusing on cutting costs rather than investing in technology this quarter, according to a report by research analysts at IDC.
- By Becky Nagel
- April 28, 2008
Information technology executives are focusing on cutting costs rather than
investing in technology this quarter, according to a report released today by
research analysts at IDC.
IDC conducted in-depth interviews with 27 U.S.-based chief technology officers
and other "senior" IT executives, and found "a significant shift
towards cost reduction...as a response to the economic downturn," according
to a released statement from Henry Morris, senior vice president of Software
and Services Research at IDC.
According to a summary of the study, more than half of the executives interviewed
said that their IT budgets had already been "negatively impacted"
by the current economic downturn, with the rest "expecting a negative future
impact." More than two-thirds also said that their funding is"moving
back to being more centralized...in part for better control and efficiency."
To help control costs, IDC said that many of the executives interviewed are
turning to technologies like virtualization and "application consolidation."
According to the summary, 25 of the 27 IT executives interviewed are also focused
on modernizing their company's legacy applications and architectures.
And while the executives interviewed said they are in need of Java, .NET, VoIP
and SAP skills, as well as security and project management expertise, they are
"very open to acquiring these skills externally."
A complete copy of the survey is available from IDC here.
About the Author
Becky Nagel serves as vice president of AI for 1105 Media specializing in developing media, events and training for companies around AI and generative AI technology. She also regularly writes and reports on AI news, and is the founding editor of PureAI.com. She's the author of "ChatGPT Prompt 101 Guide for Business Users" and other popular AI resources with a real-world business perspective. She regularly speaks, writes and develops content around AI, generative AI and other business tech. She has a background in Web technology and B2B enterprise technology journalism.