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UK Companies Streamline 2009 IT Expenditure

The first results of an annual IDC survey reveal that UK enterprises are approaching 2009 IT budgets with caution and prioritise cost-cutting and efficiency projects.

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The study, entitled Enterprise Investment Reality Check 2009: U.K. Enterprises Budget IT Services Conservatively, shows that whilst IT expenditure by UK companies has not suffered a significant reduction – as many organisations have in fact increased their IT budget as have decreased it – the economic crisis has made them more cautious when it comes to spending.

Mette Ahorlu, consulting director of IDC European Services, confirms this finding: “UK enterprises have reviewed their IT spending plans carefully in light of the economic crisis, and 2009 will not see growth similar to previous years. However, it is not all doom and gloom. Fewer new projects will start, but projects that address crisis demands, such as cost cutting and work process efficiency with a short-term horizon, have a good chance. Also, projects relating to post-merger-and-acquisition IT integration and global integration of companies’ IT environments will fare best”.

This study confirms eWEEK’s predictions that 2009 IT budgets will be orientated towards technology trends that increase company competitivity in a tight market, aligning enterprise objectives with IT department expenditure.

In response to the question “Has the IT Services Budget Increased or Decreased From the Previous Year?”, 30% of UK companies replied that budget would increase, 30% that budget would decrease and 40% that budgets remained unchanged. Whilst this does not mark a reduction in spending, it compares starkly to the results of last year’s survey, when 52% of enterprises stated their intention of increasing IT expenditure and only 12% forecast reduction.