The drop in IT spending this year, projects Gartner, will apparantly be worse than the drop in 2001 (when the tech bubble burst, 9/11 froze everyone in their boots and companies were still y2k'ed out from ushering in the new millenium from the previous year).
IT spending worldwide is supposed to drop 3.8% percent this year from 2008. That may not sound so badly. But compare it to the 2.1% drop in 2001 that caused a lot of pain for IT departments. That 3.8% drop represents a drop from $3.4 trillion to $3.2 trillion dollars; in other words a $200 billion drop in IT spending.
Forrester Research has also recently updated their IT spending projections for the year, as well. Their numbers specifically project U.S. IT spending trends. They are now projecting a 3.1% dip.
So what areas of IT spending are getting hit the hardest in the United States, according to Forrester?
- Computer equipment; down 6.7%
- Communications equipment; down 7.7%
- IT Consulting; down 1.9%
- Software (almost holding it's own); down .4%
The one area where spending is up; outsourcing. Outsourcing figures for 2009 are expected to go up by 2.1%.
Monday, I will make my case why holding onto IT staff is smart money in lean times.