Flat enterprise IT spending for 2009

Most enterprises will keep their IT budgets flat in 2009, says analyst firm Datamonitor.

The UK is the worst hit market for IT budgets, with the most planned budget cuts and the fewest increases, a global survey of more than 8,000 IT decision-makers has revealed.

This is most likely due to the UK's heavy reliance on the services sector, particularly financial and professional services, which have both been severely affected by the collapse of financial institutions, high interest rates, falling house prices and rising inflation.

More than 50 percent of respondents said they expect to keep their IT budget the same in 2009 as it was in 2008, Datamonitor said in its bi-annual report 'Technology Trends: Analysing Global Enterprise IT Budgets 2008'. A further 13 percent of the respondents expected to see IT budget cuts.

But the results reveal this is the fourth consecutive year of IT budget cutbacks, which Datamonitor said "suggests deeper concerns in the IT market than just the recent economic problems".

"Vendors should be wary in assuming that the recent downturn in IT budgets is a short-lived phenomenon," said Daniel Okubo, analyst at Datamonitor. "For the past couple of years enterprises have been cutting back IT budget increases as they adopt a more cautious viewpoint of the global economy."

On the positive side, the analyst group said most enterprises are not planning on dramatic budget cuts.

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