Freelance News and Small Business Information

IT Hit By Credit Crunch

Posted by peopleperhour.com - 05/03/2009 11:06

It appears that IT projects around risk management, post-acquisition integration and cost-cutting are going to be the hot topics this year according to analyst house IDC. However, other IT programmes won't be so lucky: the company is predicting some will be held back, trimmed down or broken up as the recession continues to take its toll.



IDC's European software and services research manager, Laura Converso, said in a statement: "Many projects will be delayed, reduced in scope, or chopped into smaller pieces, but so far we do not expect many projects to be cancelled."



 IT 'deploy and support' services spending is likely to be cut to the minimum in 2009, with IT training-related activity is forecast to drop by five per cent year-on-year.



Firms will cut back on discretionary spending and new tech projects, with IT services expenditure is expected to be flat this year: IDC has lowered its previous optimistic forecast of 2.6 per cent year-on-year growth to 0.6 per cent over 2009.



However, good news for freelance IT operators - spending on outsourcing is expected to be "less cyclical" with IDC predicting 4.4 per cent growth in 2009. Cost-cutting is the primary motivation for outsourcing.


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