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Confidence in IT spending plans takes another hit

IT decision makers have scaled back their staffing and spending expectations for the coming months, as confidence in the economy continues to wane, according to a survey.

Fewer IT leaders believe they will increase staff in the next six months and more think IT budgets will be cut over the same time, according to the survey issued by technology solutions provider CDW.

The survey, conducted in September by Richard Day Research amongst 1,058 U.S. IT decision makers, confirms that the United States' economic crisis is affecting corporate plans for IT in the coming months.

23 percent of those polled said they believed IT staff would increase in the next six months, down two percentage points from the August survey. Small-to-midsize business respondents, in particular, lowered their expectations. Four percent of small businesses said IT staffing would increase in the next six months, down from 7 percent in August. 28 percent of midsize companies polled in August believed staffing would increase, but the more recent survey shows that number has dropped to 23 percent.

Some 51 percent of corporations surveyed said they believe IT budgets will increase in the next six months, an increase of one percentage point from August. Yet the number of those that said IT budgets will decrease in the next six months grew three percentage points since August to 11 percent. About 40 percent of those polled said they believed IT budgets would remain the same.

"This decline is likely a result of slowing tax revenues and tightening budgets, which is fueled by both the current economic climate and recent market events," said Mark Gambill, vice president at CDW and the company's executive responsible for market insights. "However, the value organisations place on IT remains strong and once the economic environment becomes more stable, we expect confidence to rise accordingly."

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