Financial Crisis Delaying IT Investments

by CXOtoday Staff    May 14, 2009

The financial crisis is making clients delay computing projects rather than canceling them outright according to a survey by Gartner.  

Only 12% of indicated they have outright cancelled a planned project since October 2008. In India, 64% respondents were optimistic and expected most of their projects to be deployed as planned.

But this was in contrast with US (29%) and French (18%) companies that said they will continue their earlier planned computing projects after the current financial crisis.

"Enterprise belt-tightening has had a tremendous impact on the client computing technology segment with 43% of respondents expecting a decrease in spending on client computing hardware in 2009 compared with 2008," said Andrew Johnson, managing VP at Gartner.

Telecommunications, wholesale, agriculture, mining and construction are most likely to be planning on reduce spending. Postponements are more likely in retail, utilities, and wholesale companies, and project cancellations were above average in discrete manufacturing.

The survey revealed industries on track with their client computing plans were insurance, media and consumer business services, and summarized that 48% of all respondents indicate some of their PC projects would be deployed as planned in 2009.

The survey respondents included 475 IT decision makers in enterprises with 1,000 or more employees (except in Australia, where companies with as few as 500 workers were contacted) and were from 9 countries, including Australia, Brazil, China, France, Germany, India, Russia, the United Kingdom and the United States.